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The MONYEquity Master
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Prospectus Portfolio
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Flexible Premium
Variable Universal Life
Insurance Policy
Issued by
MONY Life Insurance Company of America
MONY Series Fund, Inc.
Enterprise Accumulation Trust
July 12, 1996
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PROSPECTUS
DATED JULY 12, 1996
FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
ISSUED BY
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY AMERICA VARIABLE ACCOUNT L
This prospectus describes a flexible premium variable universal life
insurance policy (individually, the "Policy," and collectively, the "Policies")
offered by MONY Life Insurance Company of America (the "Company"), a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("Mutual of New York"). The Policy, for so long as it remains in force, provides
lifetime insurance protection on the Insured named in the Policy through the
Maturity Date. The Policy is designed to provide maximum flexibility in
connection with premium payments and death benefits by permitting, subject to
certain restrictions, the frequency and amount of premium payments to vary and
the death benefit payable under the Policy to increase or decrease. A Policy may
also be surrendered for its Surrender Value.
The Company will pay the death proceeds when the Insured dies if the Policy
is still in force. The death proceeds will equal the death benefit, less any
Outstanding Debt reduced by any Unearned Loan Interest, and further reduced by
any charges due during the Grace Period. The Policy will remain in force as long
as the Cash Value less any Outstanding Debt remains positive. If at all times
during the first two Policy years, the sum of premiums paid less Partial
Surrenders taken (and their fees) is greater than or equal to the Minimum
Monthly Premium times the number of completed months this Policy has been in
force, the Policy and all Rider coverages will not lapse regardless of its Cash
Value less any Outstanding Debt. If the Guaranteed Death Benefit Rider is
purchased, the Specified Amount of the Policy and most Rider coverages will
remain in force for the Guarantee Period if the required premiums (less Partial
Surrenders taken (and their fees)) have been paid and Cash Value exceeds
Outstanding Debt.
The Policy permits the choice of two death benefit Options: under Option I,
the death benefit remains fixed at the Specified Amount chosen; under Option II,
the death benefit equals the Specified Amount plus Fund Value (under certain
circumstances the death benefit may be greater). Under Option II, the death
benefit will vary daily with the investment performance of the Subaccounts for
any Policy Owner who has allocated net premiums to the Variable Account. Under
either Option, for so long as the Policy remains in force, the death benefit
will never be less than the current Specified Amount.
The Policy also permits an owner of the Policy to obtain loans from the
Company in amounts up to 90% of the Cash Value of the Policy (less any
Outstanding Debt), and it permits an Owner to surrender a part of the Policy and
receive a part of the Surrender Value of the Policy.
Net premiums may be allocated at the Policy Owner's discretion to one or
more of the Subaccounts that comprise a separate account of the Company called
the MONY America Variable Account L (the "Variable Account"), or to the
Guaranteed Interest Account of the Company. Any portion of a net premium
allocated to one or more of the Subaccounts is invested in the corresponding
Portfolios of the MONY Series Fund, Inc. (the "MONY Fund") or the Enterprise
Accumulation Trust (the "Accumulation Trust"). The available Portfolios of the
MONY Fund currently are: the Money Market Portfolio, the Government Securities
Portfolio, the Intermediate Term Bond Portfolio, and the Long Term Bond
Portfolio. The available Portfolios of the Accumulation Trust are: the Equity
Portfolio, the Small Cap Portfolio, the Managed Portfolio, the International
Growth Portfolio, and the High Yield Bond Portfolio. The Loan Account represents
amounts set aside as collateral for any Policy Debt.
To the extent that all or a portion of net premiums are allocated to the
Variable Account, the Fund Value under the Policy will vary based upon the
investment performance of the Subaccounts to which the Fund Value is allocated.
Net premiums allocated to the Guaranteed Interest Account are assets of the
General Account of the Company. The Fund Value in the Guaranteed Interest
Account will accrue interest at an interest rate that is guaranteed by the
Company. No minimum amount of Fund Value is guaranteed, except to the extent
premiums are allocated to the Guaranteed Interest Account.
A Policy may be returned during the Free Look Period (see "Right to Examine
a Policy -- Free Look Period," page 16), during which time net premium payments
allocated to the Variable Account will be invested in the Money Market
Subaccount.
It may not be advantageous to replace existing insurance with the Policy.
This prospectus generally describes only the portion of the Policy involving
the Variable Account. For a brief summary of the Guaranteed Interest Account,
see "The Guaranteed Interest Account," page 42.
In pursuing its investment objective, the High Yield Bond Subaccount
purchases shares of the High Yield Bond Portfolio which may invest significantly
in lower rated bonds, commonly referred to as "Junk Bonds". Bonds of this type
are considered to be speculative with regard to the payment of interest and
return of principal. Investment in these types of securities have special risks
and, therefore, may not be suitable for all investors. Investors should
carefully assess the risks associated with allocating premium payments to this
subaccount.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THIS PROSPECTUS IS ACCOMPANIED BY THE CURRENT PROSPECTUSES FOR THE MONY
SERIES FUND, INC. AND THE ENTERPRISE ACCUMULATION TRUST. THESE
PROSPECTUSES SHOULD BE READ CAREFULLY AND RETAINED FOR FUTURE
REFERENCE.
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MONY LIFE INSURANCE COMPANY OF AMERICA
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
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TABLE OF CONTENTS
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TABLE OF CONTENTS..................................................................... i
IMPORTANT TERMS....................................................................... 1
SUMMARY OF THE POLICY................................................................. 4
Purpose of the Policy............................................................... 4
Policy Values....................................................................... 4
The Death Benefit................................................................... 4
Premium Features.................................................................... 5
Allocation Options.................................................................. 5
Transfer of Fund Value.............................................................. 6
Policy Loans........................................................................ 6
Full Surrender...................................................................... 6
Partial Surrender................................................................... 6
Preferred Partial Surrender......................................................... 6
Free Look Period.................................................................... 7
Grace Period and Lapse.............................................................. 7
Charges and Deductions.............................................................. 7
Deductions from Premiums......................................................... 7
Daily Deduction from the Variable Account........................................ 7
Deductions from Fund Value....................................................... 8
Fund Charge...................................................................... 8
Transaction and Other Charges.................................................... 9
Tax Treatment of Increases in Fund Value............................................ 9
Tax Treatment of Death Benefit...................................................... 10
The Guaranteed Interest Account..................................................... 10
Contacting the Company.............................................................. 10
INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT................................ 10
MONY Life Insurance Company of America.............................................. 10
MONY America Variable Account L..................................................... 11
The Funds........................................................................... 11
Purchase of Portfolio Shares by the Variable Account................................ 12
The Money Market Portfolio....................................................... 13
The Government Securities Portfolio.............................................. 13
The Intermediate Bond Portfolio.................................................. 13
The Long Term Bond Portfolio..................................................... 13
The Equity Portfolio............................................................. 14
The Small Cap Portfolio.......................................................... 14
The Managed Portfolio............................................................ 14
The International Growth Portfolio............................................... 14
The High Yield Bond Portfolio.................................................... 14
THE POLICY............................................................................ 14
Application for a Policy............................................................ 14
Temporary Insurance Coverage..................................................... 15
Initial Premium Payment.......................................................... 15
Policy Date...................................................................... 16
Risk Classification.............................................................. 16
Right to Examine a Policy -- Free Look Period....................................... 16
Premiums............................................................................ 16
Premium Flexibility.............................................................. 16
Scheduled Premium Payments (Planned Premium Payments)............................ 17
Choice of Guaranteed Death Benefit Riders........................................ 17
Modified Endowment Contracts..................................................... 18
Unscheduled Premium Payments..................................................... 18
Premium Payments Affect the Continuation of the Policy........................... 18
Allocation of Net Premiums.......................................................... 19
Death Benefits Under the Policy..................................................... 19
Option I......................................................................... 19
Option II........................................................................ 20
Examples of Options I and II..................................................... 20
Changes in Death Benefit Option.................................................. 20
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Changes in Specified Amount......................................................... 21
Increases........................................................................ 21
Decreases........................................................................ 22
Guaranteed Death Benefits........................................................... 22
Other Optional Insurance Benefits................................................... 23
Waiver of Monthly Deductions Rider............................................... 23
Accidental Death Benefit Rider................................................... 23
Purchase Option Rider............................................................ 24
Spouse's Term Rider.............................................................. 24
Children's Term Insurance Rider.................................................. 24
Benefits at Maturity................................................................ 24
Policy Values....................................................................... 24
Fund Value....................................................................... 24
Cash Value....................................................................... 24
Surrender Value.................................................................. 25
Determination of Fund Value......................................................... 25
Calculating Unit Values for Each Subaccount......................................... 25
Transfer of Fund Value.............................................................. 26
Right to Exchange Policy............................................................ 26
Policy Loans........................................................................ 26
Full Surrender...................................................................... 28
Partial Surrender................................................................... 28
Preferred Partial Surrender......................................................... 28
Grace Period and Lapse.............................................................. 29
Special Rule for First Two Policy Years.......................................... 29
If Guaranteed Death Benefit Rider Is Not in Effect............................... 29
If Guaranteed Death Benefit Rider Is in Effect................................... 30
Reinstatement....................................................................... 30
CHARGES AND DEDUCTIONS................................................................ 30
Deductions from Premiums............................................................ 30
Sales Charge..................................................................... 30
Tax Charges...................................................................... 31
Daily Deductions from the Variable Account.......................................... 31
Mortality and Expense Risk Charge................................................ 31
Monthly Deductions from Fund Value.................................................. 32
Cost of Insurance................................................................ 32
Administrative Charge............................................................ 32
Guaranteed Death Benefit Charge.................................................. 33
Other Optional Insurance Benefits Charges........................................ 33
Fund Charge......................................................................... 33
Administrative Fund Charge....................................................... 33
Sales Fund Charge................................................................ 34
Effect of Changes in Specified Amount on the Fund Charge......................... 34
Corporate Purchasers............................................................. 35
Transaction and Other Charges.................................................... 35
Guarantee of Certain Charges..................................................... 35
OTHER INFORMATION..................................................................... 35
Federal Income Tax Considerations................................................... 35
Definition of Life Insurance..................................................... 36
Diversification Requirements..................................................... 36
Tax Treatment of Policies........................................................ 36
Conventional Life Insurance Policies............................................. 37
Modified Endowment Contracts..................................................... 37
Reasonableness Requirement for Charges........................................... 38
Pension and Profit-Sharing Plans................................................. 38
Other Employee Benefit Programs.................................................. 39
Other............................................................................ 39
Charge for Company Income Taxes..................................................... 39
Voting of Fund Shares............................................................... 39
Disregard of Voting Instructions.................................................... 40
Report to Policy Owners............................................................. 40
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Substitution of Investment and Right to Change Operations........................... 40
Changes to Comply with Law.......................................................... 41
PERFORMANCE INFORMATION............................................................... 41
THE GUARANTEED INTEREST ACCOUNT....................................................... 42
General Description................................................................. 42
Limitations on Amounts in the Guaranteed Interest Account........................... 42
Death Benefit....................................................................... 43
Policy Charges...................................................................... 43
Transfers........................................................................... 43
Surrenders and Policy Loans......................................................... 44
MORE ABOUT THE POLICY................................................................. 44
Ownership........................................................................... 44
Joint Owners..................................................................... 44
Beneficiary......................................................................... 44
The Policy.......................................................................... 44
Notification and Claims Procedures.................................................. 44
Payments............................................................................ 45
Payment Plan/Settlement Provisions.................................................. 45
Payment in Case of Suicide.......................................................... 45
Assignment.......................................................................... 45
Errors on The Application........................................................... 46
Incontestability.................................................................... 46
Policy Illustrations................................................................ 46
Distribution of The Policy.......................................................... 46
MORE ABOUT THE COMPANY................................................................ 47
Management.......................................................................... 47
State Regulation.................................................................... 47
Telephone Transfer Privileges....................................................... 47
Legal Proceedings................................................................... 48
Legal Matters....................................................................... 48
Experts............................................................................. 48
Registration Statement.............................................................. 48
Independent Accountants............................................................. 48
Financial Statements................................................................ F-1
Appendix A............................................................................ A-1
Appendix B............................................................................ B-1
Appendix C............................................................................ C-1
Appendix D............................................................................ D-1
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IMPORTANT TERMS
AGE -- The Insured's age as of his or her nearest birthday on the Policy
Date, increased by the number of complete Policy Years elapsed.
BENEFICIARY -- The person or persons named by the Policy Owner in the
application or by proper later designation to receive the death benefit proceeds
upon the death of the Insured.
CASH VALUE -- The Fund Value for the Policy less the Fund Charge.
COMPANY, THE -- MONY Life Insurance Company of America.
FREE LOOK PERIOD -- The Period which follows the application for the Policy
and its issuance to the Policy Owner and which follows any application for an
increase in Specified Amount. During the Free Look Period which follows the
issuance of the Policy, the Policy Owner may cancel the Policy and receive a
refund. During a Free Look Period following any increase in Specified Amount,
the Policy Owner has a right, in effect, to cancel the increase in Specified
Amount and have the charges and deductions attributable to such increase added
to the Fund Value.
FUND CHARGE -- A contingent deferred charge. The Fund Charge consists of
two separately calculated elements: the administrative Fund Charge and the sales
Fund Charge. The Fund Charge is determined for the initial Specified Amount of
the Policy and for each increase in Specified Amount.
FUNDS -- The MONY Series Fund, Inc. and the Enterprise Accumulation Trust.
FUND VALUE -- The Fund Value is the sum of the amounts under the Policy
held in each Subaccount of the Variable Account and the Guaranteed Interest
Account, as well as any amount set aside in the Company's Loan Account, and any
interest thereon, to secure Outstanding Debt.
GENERAL ACCOUNT -- All assets of the Company other than those allocated to
the Variable Account or to any other segregated separate account of the Company.
GUARANTEED INTEREST ACCOUNT -- An account that is part of Company's General
Account to which all or a portion of net premium payments may be allocated for
accumulation at a fixed rate of interest (which may not be less than 5.0%)
declared by Company.
GUARANTEE PERIOD -- The period during which the Specified Amount is
guaranteed under the Guaranteed Death Benefit Rider. See "Guaranteed Death
Benefits", page 22.
HOME OFFICE -- The Company's administrative office at 1740 Broadway, New
York, New York, 10019. "Home Office" also includes the Company's Syracuse
Operations Center at 1 MONY Plaza, Syracuse, N.Y. 13202.
INSURED -- The person upon whose life the Policy is issued and whose death
is the contingency upon which the death benefit proceeds are payable.
LOAN ACCOUNT -- An account to which amounts are transferred from the
Subaccounts and the Guaranteed Interest Account as collateral for any
Outstanding Debt. The Loan Account is part of the Company's General Account, and
it accumulates interest at a guaranteed rate of 5.0%.
MATURITY DATE -- The Policy Anniversary on which the Insured is Age 95.
MINIMUM MONTHLY PREMIUM -- The amount determined by the Company which is
necessary to keep the Policy in force for the first two Policy Years.
MONTHLY ANNIVERSARY DAY -- The day each month on which the monthly
deduction is due against the Fund Value. The first Monthly Anniversary Day is
the Policy Date.
OUTSTANDING DEBT -- The unpaid loan balance including accrued loan interest
due and unpaid.
PARTIAL SURRENDER -- The surrender of a portion of the Policy. At least
$500 of Surrender Value must remain after a Partial Surrender, or a full
surrender of the Policy will be required.
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PLANNED PREMIUM PAYMENTS -- The premium amount specified on the application
as the amount the Policy Owner intends to pay at selected intervals over a
specified period of time. Within specified limits, premiums in excess of Planned
Premium Payments may be paid. Planned Premium Payments may be changed at any
time. For policies offered or issued for delivery outside the Commonwealth of
Massachusetts, see the term "Scheduled Premium Payments".
POLICY DATE -- The date set forth on page 1 of the Policy that is used to
determine the Monthly Anniversary Day, Policy months, and Policy years. Policy
monthly, quarterly, semiannual and annual Anniversaries are measured from the
Policy Date. Each Policy month starts on the same date in each calendar month as
that specified as the Policy Date. Where the Policy Date is the 29th, 30th, or
31st of a month, and there is no such date in a calendar month, the Policy month
for such month will start on the last day of that calendar month.
POLICY OWNER OR OWNER -- The person who owns the Policy. The Policy Owner
will be the Insured unless otherwise stated in the application. If the Policy
has been absolutely assigned, the assignee becomes the Policy Owner. A
collateral assignee is not the Owner.
PORTFOLIO(S) -- The separate investment portfolios of the Funds.
PREFERRED PARTIAL SURRENDER -- An amount, up to 10% of Cash Value, which
may be surrendered without the application of a Fund Charge or reduction in
specified amount.
RIDER -- The addendum to a Policy which adds an optional insurance benefit
to the Policy.
SCHEDULED PREMIUM PAYMENTS -- The premium amount specified on the
application as the amount the Policy Owner intends to pay at fixed intervals
over a specified period of time. Within specified limits, premiums in excess of
the Scheduled Premium Payments may be paid. Scheduled Premium Payments may be
changed at any time. For policies offered or issued for delivery in the
Commonwealth of Massachusetts, see the term "Planned Premium Payments".
SPECIFIED AMOUNT -- The minimum death benefit for so long as the Policy
remains in force. The Specified Amount may be increased or decreased under
certain circumstances.
SUBACCOUNTS -- The subdivisions of the Variable Account. Each Subaccount
invests exclusively in the shares of a corresponding Portfolio of one of the
Funds.
SURRENDER VALUE -- The Cash Value less any Outstanding Debt reduced by any
Unearned Loan Interest.
TARGET PREMIUM -- The maximum amount of premiums paid against which the
Fund Charge may be applied.
TRANSACTION DATE -- The date the Company receives a premium or acceptable
written or telephone request at the Home Office. If the premium or request
reaches the Home Office on a day which is not a Valuation Date or after the
close of business on a Valuation Date (i.e., after 4:00 p.m. Eastern Time), the
Transaction Date will be the next Valuation Date.
UNEARNED LOAN INTEREST -- The amount of interest on Outstanding Debt which
has not yet been earned by the Company. Interest on new Policy loans or
Outstanding Debt is charged in advance on the date of the loan or the Policy
Anniversary, as appropriate.
UNIT -- The bookkeeping measure used to value the amounts allocated to the
Subaccounts of the Variable Account.
UNIT VALUE -- The value of the Units of each Subaccount of the Variable
Account. Unit Values are calculated for each Subaccount on each Valuation Date.
VALUATION DATE -- Each date on which the Variable Account is valued, which
currently includes each day that the New York Stock Exchange is open for trading
and on which there is sufficient trading in the securities of a Portfolio of the
Funds to affect materially the unit value of the corresponding Subaccount of the
Variable Account.
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VALUATION PERIOD -- The period that starts at the close of a Valuation Date
and ends at the close of the next succeeding Valuation Date.
VARIABLE ACCOUNT -- The Company's Variable Account L, a separate investment
account established by the Company to receive and invest the net premiums paid
under the Policy.
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SUMMARY OF THE POLICY
This summary is intended to provide a brief overview of the more
significant aspects of the Policy. Further detail is provided in this prospectus
and in the Policy. Unless the context indicates otherwise, the discussion in
this summary and the remainder of the prospectus relates to the portion of the
Policy involving the Variable Account. The Guaranteed Interest Account is
briefly described under "The Guaranteed Interest Account," on page 10 and in the
Policy.
PURPOSE OF THE POLICY
The Policy offers a Policy Owner insurance protection on the life of the
Insured through the Maturity Date for so long as the Policy is in force. A
maturity benefit will be paid in lieu of a death benefit when the Policy reaches
the Maturity Date during the Insured's lifetime. Like traditional fixed life
insurance, the Policy provides for a death benefit equal to its Specified
Amount, accumulation of cash value, and surrender and loan privileges. Unlike
traditional fixed life insurance, the Policy offers a choice of investment
alternatives and an opportunity for the Policy's Fund Value and its death
benefit, to grow based on investment results. The Policy is a flexible premium
policy, so that, unlike many other insurance policies, a Policy Owner may choose
the amount and frequency of premium payments, within certain limits.
POLICY VALUES
A Policy Owner may allocate net premium payments among the various
Subaccounts that comprise the Variable Account and that invest in corresponding
Portfolios of the MONY Series Fund and the Accumulation Trust. A Policy Owner
may also allocate net premium payments to the Guaranteed Interest Account. The
Loan Account represents amounts set aside in the General Account of the Company
as collateral for Outstanding Debt.
The Fund Value of the Policy is the sum of amounts allocated to the
Subaccounts of the Variable Account, the Guaranteed Interest Account and the
Loan Account. The Cash Value of the Policy is the Fund Value less the Fund
Charge. The Surrender Value of the Policy is the Cash Value less any Outstanding
Debt reduced by any Unearned Loan Interest.
Depending on the investment experience of the selected Subaccounts, the
Fund Value may increase or decrease on any day. The death benefit may or may not
increase or decrease depending upon several factors, including the death benefit
Option selected by the Policy Owner, although the death benefit will never
decrease below the Specified Amount provided the Policy is in force. There is no
guarantee that the Policy's Fund Value and death benefit will increase. The
Policy Owner bears the investment risk on that portion of the net premiums and
Fund Value allocated to the Variable Account.
The Policy will remain in force until the earliest of the Maturity Date,
the death of the Insured, or a full surrender of the Policy, unless, before any
of these events, the Policy lapses and a Grace Period expires without sufficient
additional premium payment or repayment of Outstanding Debt by the Policy Owner.
Generally, the Policy will remain in force only as long as the Cash Value
less any Outstanding Debt is sufficient to pay all the monthly deductions.
However, if the premiums paid meet the Minimum Monthly Premium requirement
during the first two Policy years, the Policy and all Rider coverages will
remain in force even if the Cash Value of the Policy less any Outstanding Debt
is not sufficient to pay the monthly deductions. If the Guaranteed Death Benefit
Rider is purchased, the Specified Amount of the Policy and most Rider coverages
will remain in force for the Guarantee Period if the required premiums have been
paid and Cash Value exceeds Outstanding Debt. The amount by which the death
benefit may exceed the Specified Amount is not guaranteed to remain in force
during a Guarantee Period.
THE DEATH BENEFIT
The minimum Specified Amount for a Policy is $100,000. A Policy Owner may
elect one of two Options to calculate the amount of death benefit payable under
the Policy, which may increase the death benefit. Under Option I, the death
benefit will be equal to the Specified Amount of the Policy plus the increase in
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Fund Value since the last Monthly Anniversary Day, or, if greater, the Fund
Value (determined as of the date of the Insured's death) plus the Fund Value on
the last Monthly Anniversary Day multiplied by a death benefit percentage
required by the federal tax law definition of life insurance. Under Option II,
the death benefit will be equal to the Specified Amount of the Policy plus the
Fund Value (determined as of the date of the Insured's death) or, if greater,
the Fund Value (determined as of the date of the Insured's death) plus the Fund
Value on the last Monthly Anniversary Day multiplied by the death benefit
percentage. Policy Owners seeking to have favorable investment performance
reflected in increasing Fund Value should choose Option I; Policy Owners seeking
to have favorable investment performance reflected in increasing insurance
coverage should choose Option II. A Policy Owner may change the death benefit
Option and increase or decrease the Specified Amount, subject to certain
conditions. See "Death Benefits Under the Policy," page 19.
The Policy Owner may, at time of application, choose to purchase one of two
Guaranteed Death Benefit Riders. These Riders provide a guarantee that the
Specified Amount and most Rider coverages will remain in force for the Guarantee
Period regardless of the amount of the Policy's Surrender Value. The Riders
allow a choice of Guarantee Periods: (i) to the Insured's Age 75 or ten years
from the Policy Date, whichever is later, or (ii) to the Maturity Date. The
Minimum Monthly Premium will be higher if the guarantee to Maturity Date is
chosen. The amount of the additional premium required will vary depending upon
the Rider chosen. An extra charge will also be deducted from the Fund Value each
month the Rider is in effect. See "Guaranteed Death Benefits," page 22.
PREMIUM FEATURES
The Company requires a Policy Owner to pay an initial premium equal to at
least the Minimum Monthly Premium that is defined by the Company. Thereafter,
subject to certain limitations, a Policy Owner may choose the amount and
frequency of premium payments. The Policy, therefore, provides the Policy Owner
with the flexibility to vary premium payments to reflect varying financial
conditions.
When applying for a Policy, a Policy Owner will determine a Scheduled
Premium Payment that provides for the payment of level premiums in regular
intervals over a specified period of time. Each Policy Owner will receive a
premium reminder notice for the Scheduled Premium Payment on either an annual,
semiannual, or quarterly basis, at the option of the Policy Owner; however, the
Policy Owner may not be required to pay Scheduled Premium Payments. Premiums may
be paid monthly under the MONYMatic plan where the Owner authorizes the Company
to withdraw Scheduled Premium Payments from the Owner's checking account each
month. (For Policies offered or issued for delivery in the Commonwealth of
Massachusetts, the Policy Owner will be asked to indicate on the application the
amount the Policy Owner intends to pay at selected intervals. For those Policy
Owners, the term "Scheduled Premium Payment" used in this Prospectus, refers to
Planned Premium Payments.)
The amount, frequency, and period of time over which a Policy Owner pays
premiums may affect whether or not the Policy will be classified as a modified
endowment contract, which is a type of life insurance contract subject to
different tax treatment for certain pre-death distributions. For more
information on the tax treatment of life insurance contracts, including those
classified as modified endowment contracts. See "Federal Income Tax
Considerations," page 35.
Payment of the Scheduled Premiums will not guarantee that a Policy will
remain in force. See "Grace Period and Lapse," page 7. Unscheduled premium
payments may not be less than $250. The Company also may reject or limit any
premium payment that would result in an immediate increase in the net amount at
risk under the Policy, although such a premium may be accepted with satisfactory
evidence of insurability.
ALLOCATION OPTIONS
The Subaccounts invest in portfolios of two mutual funds which offer the
Policy Owner the opportunity to direct the Company to invest in diversified
portfolios of stocks, bonds, money market instruments, or a combination of these
securities. Each of the Subaccounts invests exclusively in shares of a
designated portfolio (a "Portfolio") of the MONY Series Fund, Inc. (the "MONY
Series Fund") or the Enterprise Accumulation Trust (the "Accumulation Trust")
(collectively the "Funds"). The available Portfolios of the Funds,
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each of which has a different investment objective, are the Money Market
Portfolio, the Government Securities Portfolio, the Intermediate Term Bond
Portfolio, the Long Term Bond Portfolio, the Equity Portfolio, the Small Cap
Portfolio, the Managed Portfolio, the International Growth Portfolio, and the
High Yield Bond Portfolio. See "The Funds," page 11.
The Company is the investment manager of the MONY Series Fund. Enterprise
Capital Management, Inc., a subsidiary of The Mutual Life Insurance Company of
New York, is the investment manager of the Accumulation Trust. Quest for Value
Advisors, a subsidiary of Oppenheimer Capital, is the sub-investment adviser, of
the Equity, Small Cap, and Managed Portfolios; Brinson Partners, Inc. is the
sub-investment adviser of the International Growth Portfolio; and Caywood-Scholl
Capital Corporation is the subinvestment adviser of the High Yield Bond
Portfolio.
The Policy Owner may choose to allocate net premium payments to any or all
of the available Subaccounts constituting the Variable Account, and to the
Guaranteed Interest Account.
TRANSFER OF FUND VALUE
The Policy Owner may transfer Fund Value among the Subaccounts, and,
subject to certain other limitations, between the Subaccounts and the Guaranteed
Interest Account. Transfers may be made by telephone if an authorization for
telephone transfer form has been properly completed and signed and filed at the
Company's Syracuse Operations Center. See "Transfer of Fund Values," page 25.
POLICY LOANS
The Policy Owner may borrow from the Company an amount up to 90% of the
Policy's Cash Value less any existing Outstanding Debt. The minimum loan is
$250. The Policy will be the only security required for a loan. See "Policy
Loans," page 26.
The amount of any Outstanding Debt reduced by any Unearned Loan Interest is
subtracted from the death benefit or from the Cash Value upon surrender. See
"Full Surrender," page 27. Outstanding Debt may also impact the continuation of
the Policy. See "Grace Period and Lapse," page 28.
FULL SURRENDER
The Owner can surrender the Policy during the life of the Insured and
receive its Surrender Value, which is equal to the Fund Value less the Fund
Charge and less any Outstanding Debt reduced by any Unearned Loan Interest.
PARTIAL SURRENDER
Partial Surrenders are available under the Policy after the second Policy
anniversary so long as the Surrender Value remaining after giving effect to the
requested surrender and any fees which may be assessed as a result of the
Partial Surrender exceeds any minimum requirements. If a Partial Surrender is
for an amount which exceeds the amount available, it will be rejected and the
request will be returned to the Policy Owner. A Partial Surrender may decrease
the Specified Amount of a Policy if the Owner has elected death benefit Option
I, and it will decrease the death benefit if the death benefit is greater than
the Specified Amount under either Option I or II. See "Partial Surrender," at
page 27.
Among other restrictions, Partial Surrenders must be for at least $500, and
the Policy's Surrender Value after the surrender must be at least $500. A
Partial Surrender Fee of $25 or 2% of the amount surrendered, whichever is less,
will be assessed against the remaining Fund Value. In addition, a portion of the
Fund Charge may be assessed upon a Partial Surrender.
PREFERRED PARTIAL SURRENDER
A Policy Owner may obtain during any Policy year after the second Policy
anniversary amounts, up to 10% of Cash Value (on the date the first Partial
Surrender request is received), without the application of a
6
<PAGE> 12
Fund Charge or reduction in specified amount. The Partial Surrender Fee,
however, will be charged. This amount is referred to as the Preferred Partial
Surrender Amount. See "Preferred Partial Surrender", page 28.
FREE LOOK PERIOD
A Policy Owner may obtain a full refund of the premium paid if the Policy
is returned within 10 days (or longer in certain states) after the Owner
receives it, within 10 days after the Company mails or delivers the notice of
the right of withdrawal, or 45 days after the application for the Policy is
completed, whichever is later. During the Free Look Period, net premiums will be
allocated to the Money Market Subaccount, which invests in the Money Market
Portfolio of the MONY Series Fund. During a Free Look Period following any
increase in Specified Amount, the Policy Owner has a right, in effect, to cancel
the increase in Specified Amount and have the charges and deductions
attributable to such increase added to the Fund Value. See "Right to Examine a
Policy -- Free Look Period", page 16.
GRACE PERIOD AND LAPSE
Payment of Scheduled Premium Payments will not guarantee that a Policy will
remain in force. Instead, unless one of the Guaranteed Death Benefit Riders has
been elected and all requirements have been met, the duration of the Policy
depends upon the Policy's Cash Value less any Outstanding Debt. However, during
the first two Policy years, if on each Monthly Anniversary Day the sum of
premiums paid, less the sum of Partial Surrenders (and any fees relating
thereto) and any Outstanding Debt is greater than or equal to the Minimum
Monthly Premium times the number of completed Policy months, the Policy is
guaranteed not to lapse, regardless of the Policy's Cash Value less Outstanding
Debt. Even if Scheduled Premium Payments are made, if either of these two
provisions do not apply, the Policy will lapse any time the Cash Value less
Outstanding Debt is insufficient to pay the current monthly deduction and a
Grace Period expires without sufficient payment.
While the Guaranteed Death Benefit Rider is in force, if on any Monthly
Anniversary Day the Cash Value is less than Outstanding Debt or the total
premiums received less any Partial Surrenders and their fees do not exceed the
premiums required under the Guaranteed Death Benefit Rider (See "Guaranteed
Death Benefits", page 22.), a notice will be sent which will give the Policy
Owner 61 days from the date thereof to make additional payments to the Policy.
See "Grace Period and Lapse", page 28.
The Guaranteed Death Benefit Rider is not available on Policies offered or
issued for delivery to residents of the Commonwealth of Massachusetts or the
State of Texas, and, therefore, Grace Period and Lapse will be treated as if the
Guaranteed Death Benefit Rider is not in effect. See "Grace Period and Lapse,
page .
CHARGES AND DEDUCTIONS
DEDUCTIONS FROM PREMIUMS
Certain charges are deducted from each premium payment under a Policy prior
to applying the net premium to the Fund Value. These charges consist of the
following items:
SALES CHARGE -- A sales charge equal to 4% of each premium paid during the
first ten Policy Years, 2% of each premium paid in Policy Years 11 through 20,
and none thereafter.
TAX CHARGE -- A state and local premium tax charge, currently equal to 2.0%
of each premium, and a charge related to the federal tax treatment of deferred
acquisition costs currently equal to 1.25% of each premium will be deducted to
compensate the Company for these taxes. Actual state and local premium taxes
vary, ranging from 0% to 4%. The Company does not expect to make a profit from
this charge. (See "Tax Charges", page 31.)
DAILY DEDUCTION FROM THE VARIABLE ACCOUNT
A charge is deducted from the Variable Account each day for the Mortality
and Expense Risk Charge as described below.
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<PAGE> 13
MORTALITY AND EXPENSE RISK CHARGE -- A charge is deducted daily from each
Subaccount of the Variable Account for mortality and expense risks assumed by
the Company. For the first 10 Policy years, this charge is equal to .002055% of
the amount in the Subaccount, which is equivalent to an annual rate of .75% of
Subaccount value. Each month the Policy remains in force after the tenth Policy
Anniversary, the Fund Value allocated to the Subaccounts will be credited with
an amount which will effectively reduce the Mortality and Expense Risk Charge.
It is expected that this will be an amount equal to 0.00137% of the Subaccount
value. This is equivalent to 0.5% on an annualized basis. This amount, which is
not guaranteed, will be allocated among the Subaccounts proportionately on each
Monthly Anniversary Day following the tenth Policy Anniversary.
DEDUCTIONS FROM FUND VALUE
A charge called the Monthly Deduction is deducted from the Fund Value on
each Monthly Anniversary Day. The monthly deduction consists of the following
items:
COST OF INSURANCE -- This monthly charge compensates the Company for
providing life insurance coverage for the Insured. The amount of the charge is
equal to a current cost of insurance rate multiplied by the net amount at risk
under the Policy at the beginning of each Policy Month.
ADMINISTRATIVE CHARGE -- An administrative charge is deducted each month
based on the Specified Amount of the Policy. The administrative charge decreases
after the first Policy year:
<TABLE>
<CAPTION>
EACH OF EACH POLICY MONTH
FIRST 12 POLICY MONTHS THEREAFTER
---------------------- -----------------
<S> <C> <C>
Specified Amount:
Less than $250,000............................ $ 31.50* $6.50
$250,000 to $499,999.......................... 28.50* 3.50
$500,000 or more.............................. 25.00* None
</TABLE>
- ---------------
* Reduced by $5.00 for issue ages 0 through 17.
GUARANTEED DEATH BENEFIT CHARGE -- If the Guaranteed Death Benefit Rider
has been elected, a charge of $0.01 per thousand of Policy Specified Amount and
certain Rider amounts per month will be charged during the Guarantee Period. The
Guaranteed Death Benefit Rider is not available on Policies offered or issued
for delivery to residents of the Commonwealth of Massachusetts or the State of
Texas.
OPTIONAL INSURANCE BENEFITS CHARGES -- The monthly deduction will include
charges for any other optional insurance benefits added to the Policy by Rider.
FUND CHARGE
The Company will assess a Fund Charge against Fund Value upon surrender of
a Policy or reduction in the Specified Amount within fourteen years of the
Policy Date or of a subsequent increase in Specified Amount. The Fund Charge
consists of two charges: an Administrative Fund Charge and a Sales Fund Charge.
8
<PAGE> 14
ADMINISTRATIVE FUND CHARGE -- The Administrative Fund Charge is equal to an
amount per thousand of Specified Amount as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE
ISSUE AGE FUND CHARGE
------------------------------------------------------------------------ --------------
<S> <C>
0-25.................................................................... $ 2.50
26...................................................................... 3.00
27...................................................................... 3.50
28...................................................................... 4.00
29...................................................................... 4.50
30 or higher............................................................ 5.00
</TABLE>
The amount of the charge remains level for five years. After the fifth year, the
charge decreases by 10% per year until it reaches zero at the end of the 14th
year. See "Fund Charge -- Administrative Fund Charge", page 33.
SALES FUND CHARGE -- The Sales Fund Charge is equal to a percentage of the
premiums paid in the first five years, up to a maximum amount of premiums called
the Target Premium. The percentage of premiums varies by Age as follows:
<TABLE>
<CAPTION>
ISSUE AGE PERCENTAGE
-------------------------------------------------------------------------- ----------
<S> <C>
0-17...................................................................... 50%
18-65..................................................................... 75
66........................................................................ 70
67........................................................................ 65
68........................................................................ 60
69........................................................................ 55
70 or higher.............................................................. 50
</TABLE>
The Sales Fund Charge can increase as premiums are paid during the five year
period. Starting on the fifth anniversary, the charge decreases from its maximum
by 10% per year until it reaches zero at the end of the 14th year. The Sales
Fund Charge during the first two years that the Policy is in force is limited.
See "Fund Charge -- Sales Fund Charge", page 34.
Administrative Fund Charges and Sales Fund Charges are determined in a
similar manner for increases in Specified Amount. Decreases in Specified Amount
may result in immediate deduction of a portion of the Sales Fund Charge and
Administrative Fund Charge from the Fund Value.
TRANSACTION AND OTHER CHARGES
A Partial Surrender Fee of the lesser of 2% of the amount surrendered and
$25 will be assessed against the remaining Fund Value for any Partial Surrender
or Preferred Partial Surrender. In addition, the Company reserves the right to
charge a fee of $25 on transfers which exceed four in any Policy year.
The operating expenses of the Variable Account are paid by the Company and
certain charges, deductions, and fees are made or imposed to compensate the
Company for these expenses and for the risk that the charges, deductions, and
fees may not be sufficient to compensate the Company. Investment advisory fees
and operating expenses of the Fund are paid by the Fund. For a description of
these charges, see "Charges and Deductions," page 30.
TAX TREATMENT OF INCREASES IN FUND VALUE
The Fund Value under the Policy is currently subject to the same federal
income tax treatment as the cash value under fixed life insurance. Therefore,
generally the Policy Owner will not be deemed to be in constructive receipt of
the Fund Value unless and until the Policy Owner is deemed to be in receipt of a
distribution from the Policy. For information on the tax treatment of the Policy
and on the tax treatment of a
9
<PAGE> 15
Full Surrender, a Partial Surrender, a Preferred Partial Surrender, or a Policy
loan, see "Federal Income Tax Considerations," page 35.
TAX TREATMENT OF DEATH BENEFIT
The death benefit under the Policy is currently subject to federal income
tax treatment consistent with that of fixed life insurance. Therefore, generally
the death benefit will be fully excludable from the gross income of the
Beneficiary under the Internal Revenue Code. See "Federal Income Tax
Considerations," page 35.
THE GUARANTEED INTEREST ACCOUNT
The Policy Owner may allocate all or a portion of net premium payments and
transfer Fund Value to the Guaranteed Interest Account, within specified limits.
Amounts allocated to the Guaranteed Interest Account are held in the Company's
General Account. The Company guarantees that the Fund Value allocated to the
Guaranteed Interest Account will be credited interest daily at a rate equivalent
to an effective annual rate of 5%. In addition, the Company may in its sole
discretion pay interest in excess of the guaranteed amount. After the tenth
Policy anniversary, it is expected the annual interest rates that apply to the
Fund Value in the Guaranteed Interest Account will be .5% higher than otherwise
applicable. This increase is not guaranteed. See "The Guaranteed Interest
Account," page 42.
CONTACTING THE COMPANY
All written requests, notices, and forms required by the Policies, and any
questions or inquiries should be directed to the Company's Operations Center at
1 MONY Plaza, Syracuse, New York 13202.
INFORMATION ABOUT THE COMPANY AND THE VARIABLE ACCOUNT
MONY LIFE INSURANCE COMPANY OF AMERICA
MONY Life Insurance Company of America (the "Company") is a stock life
insurance company organized in the State of Arizona. The Company is currently
licensed to sell life insurance and annuities in 49 states (not including New
York), the District of Columbia, the U.S. Virgin Islands, and Puerto Rico. The
Company is the corporate successor of Vico Credit Life Insurance Company,
incorporated in Arizona on March 6, 1969.
The Company is a wholly owned subsidiary of The Mutual Life Insurance
Company of New York ("Mutual of New York"), a mutual life insurance company
organized under the laws of the state of New York in 1842. The principal office
of Mutual of New York is located at 1740 Broadway, New York, New York 10019. It
is admitted to do business in all states, as well as the District of Columbia,
and Puerto Rico. As of the end of 1995, Mutual of New York had over $83.1
billion of life insurance in force and consolidated assets of approximately
$14.6 billion.
At December 31, 1995, Mutual of New York had approximately $115.6 million
invested in the Company to support its insurance operations. Mutual of New York
intends from time to time to make additional capital contributions to the
Company as needed to enable it to meet its reserve requirements and expenses in
connection with its business. Generally, Mutual of New York is under no
obligation to make such contributions, and its assets do not back the benefits
paid under the Policies.
At May 1, 1996, the rating assigned to the Company by A. M. Best Company,
Inc., an independent insurance company rating organization, was A- (Excellent)
based upon an analysis of financial condition and operating performance through
the end of 1994. At the same date, Mutual of New York was rated A- (Excellent)
on the same basis. The A. M. Best rating of the Company should be considered
only as bearing on the ability of the Company to meet its obligations under the
Policies.
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<PAGE> 16
The Company has a service agreement with Mutual of New York whereby Mutual
of New York provides the Company with such personnel, facilities, etc., as are
reasonably necessary for the conduct of the Company's business. These services
are provided on a cost reimbursement basis. The Company intends to administer
the Policies itself, utilizing the services provided by Mutual of New York to
meet its obligations under the Policies.
MONY Securities Corp., a wholly owned subsidiary of Mutual of New York, is
the principal underwriter for the Policies.
MONY AMERICA VARIABLE ACCOUNT L
The MONY America Variable Account L (the "Variable Account") is a separate
investment account of the Company and at present is used only to support
flexible premium variable life insurance policies. The assets in the Variable
Account are kept separate from the General Account assets and other separate
accounts of the Company.
The Company owns the assets in the Variable Account and is required to
maintain sufficient assets in the Variable Account with a total market value
equal to the Policy liabilities funded by the Variable Account. The Variable
Account is divided into subdivisions called Subaccounts. The income, gains, or
losses, realized or unrealized, of the Variable Account are credited to or
charged against the assets held in the Variable Account without regard to the
other income, gains, or losses of the Company. Assets in the Variable Account
attributable to the reserves and other liabilities under the Policies are not
chargeable with liabilities arising from any other business that the Company
conducts. However, the Company may transfer to its General Account any assets
which exceed anticipated obligations of the Variable Account. All obligations
arising under the Policy are general corporate obligations of the Company. The
Company may accumulate in the Variable Account proceeds from various Policy
charges and investment results applicable to those assets.
The Variable Account was established on March 27, 1987 under Arizona law
under the authority of the Board of Directors of Company. The Variable Account
is registered as a unit investment trust with the SEC. Such registration does
not involve any supervision by the SEC of the administration or investment
practices or policies of the Account.
There are currently nine Subaccounts within the Variable Account available
to the Policyholder. Each Subaccount invests exclusively in shares of a
designated Portfolio of the Funds. For example, the Long Term Bond Subaccount
invests solely in shares of the MONY Series Fund, Inc. Long Term Bond Portfolio.
These Portfolios are available to serve only as the underlying investment for
variable annuity and variable life insurance contracts issued through separate
accounts of the Company as well as other life insurance companies, and may be
available to certain pension accounts. They are not available directly to
individual investors. The Company may in the future establish additional
Subaccounts within the Variable Account, which may invest in other Portfolios of
the Funds or in other securities. Not all Subaccounts are available to the
Policy Owner.
THE FUNDS
Each Subaccount of the Variable Account currently invests only in shares of
a corresponding Portfolio of the MONY Series Fund, Inc. (the "MONY Series Fund")
or the Enterprise Accumulation Trust (the "Accumulation Trust") (the MONY Series
Fund and the Accumulation Trust are collectively called the "Funds"). The Funds
are diversified, open end management investment companies of the series type.
The Funds are registered with the SEC under the Investment Company Act of 1940.
Such registration does not involve supervision by the SEC of the investments or
investment policy of the Funds.
Of the seven separate Portfolios of the MONY Series Fund, currently only
four portfolios ("Portfolios"), each of which pursues different investment
objectives and policies, are available for purchase by corresponding Subaccounts
of the Variable Account available to the Policy Owner. The Company acts as the
investment manager of the MONY Series Fund. The Company is a registered
investment adviser under the Investment Advisers Act of 1940. As investment
adviser to the MONY Series Fund, the Company receives a daily
11
<PAGE> 17
investment advisory fee equivalent to an annual rate of 0.40 percent of the
first $400 million, 0.35 percent of the next $400 million. and 0.30 percent for
in excess of $800 million of the aggregate average daily net assets of all
Portfolios of the MONY Series Fund, as described in the accompanying current
prospectus for the MONY Series Fund. The Company, as investment adviser, has
agreed to bear all expenses associated with organizing the Fund, the initial
registration of its securities, the calculation of the net asset value of the
Portfolios, and the compensation of the Fund's directors, officers and employees
who are interested persons of the Company. All other expenses will be borne by
the Fund itself, subject to certain limitations imposed by state law. The
Company has entered into a Services Agreement with Mutual of New York for the
provision of personnel, equipment, facilities and other services, in order to
carry out its duties as investment adviser to the Fund.
Of the five separate Portfolios of the Accumulation Trust, currently all
five separate Portfolios, each of which pursues different investment objectives
and policies, are available for purchase by corresponding Subaccounts of the
Variable Account. Enterprise Capital Management, Inc., a wholly owned subsidiary
of Mutual of New York, ("Enterprise Capital") acts as the investment manager of
the Accumulation Trust. Enterprise Capital, as investment adviser to the
Accumulation Trust, will receive, effective on and after May 1, 1996, from the
Accumulation Trust monthly compensation with respect to the Equity, Small Cap,
and Managed Portfolios that it advises at an annual rate of 0.80 percent of the
first $400 million of the aggregate average daily net assets of those
portfolios, 0.75 percent of the next $400 million of the aggregate average daily
net assets of those portfolios, and 0.70 percent of the aggregate average daily
net assets of those portfolios which exceed $800 million. OpCap Advisors,
formerly known as Quest for Value Advisors, a subsidiary of Oppenheimer Capital,
as the sub-investment adviser to the Equity and Managed Portfolios of the
Accumulation Trust, will receive, effective on and after May 1, 1996 from
Enterprise Capital and not the Accumulation Trust, 0.40 percent (0.30 percent of
assets in excess of $1 billion) of the aggregate average daily net assets of the
Equity, Small Cap, and Managed Portfolios. Oppenheimer Capital is a subsidiary
of Oppenheimer Financial Corporation. The change of name to OpCap Advisors was
occasioned by the sale of certain of the operations of Quest for Value Advisors
to Oppenheimer Management Corporation in November 1995. No change in the
personnel responsible for the day-to-day management of the Equity and Managed
Portfolios will occur as a result of this change. GAMCO Investors, Inc., as
sub-investment adviser to the Small Cap Portfolio of the Accumulation Trust,
will receive from Enterprise Capital and not the Accumulation Trust, 0.40
percent (0.30 percent of assets in excess of $1 billion) of the aggregate
average daily net assets of the Small Cap Portfolio. Enterprise Capital, as
investment adviser to the Accumulation Trust, will receive from the Accumulation
Trust monthly compensation with respect to the International Growth Portfolio
that it advises at an annual rate of 0.85 percent of the aggregate average daily
net assets of the International Growth Portfolio, and Brinson Partners, Inc., as
the sub-investment adviser to the International Growth Portfolio, will receive
from Enterprise Capital and not the Accumulation Trust, 0.4495 percent (53% of
the fee received by Enterprise Capital; the fee paid to Brinson Partners
declines as assets exceed $100 million) of the aggregate average daily net
assets of the International Growth Portfolio. Enterprise Capital, as investment
adviser to the Accumulation Trust, will receive from the Accumulation Trust
monthly compensation with respect to the High Yield Bond Portfolio that it
advises at an annual rate of 0.60 percent of the aggregate average daily net
assets of the High Yield Bond Portfolios, and Caywood-Scholl Capital
Corporation, as sub-investment adviser to the High Yield Bond Portfolio, will
receive from Enterprise Capital and not the Accumulation Trust, 0.30 percent
(0.252 percent for assets in excess of $100 million) of the aggregate average
daily net assets of the High Yield Bond Portfolio.
The investment objectives of each Portfolio are fundamental and may not be
changed without the approval of the holders of a majority of the outstanding
shares of the Portfolio affected (which, for each of the Funds, means the lesser
of (1) 67 percent of the Portfolio shares represented at a meeting at which more
than 50 percent of the outstanding Portfolio shares are represented or (2) more
than 50 percent of the outstanding Portfolio shares).
PURCHASE OF PORTFOLIO SHARES BY THE VARIABLE ACCOUNT
The shares of each Portfolio are purchased by the Company for the
corresponding Subaccount at net asset value, i.e., without sales load. All
dividends and capital gains distributions received from a Portfolio are
automatically reinvested in such Portfolio at net asset value, unless the
Company, on behalf of the Variable
12
<PAGE> 18
Account, elects otherwise. Fund shares will be redeemed by the Company at their
net asset value to the extent necessary to make payments under the Policies.
Shares of the Funds are offered only for purchase by separate accounts of
insurance companies, which may or may not be affiliated with the Company, or
with each other. This is called "shared funding." They may also sell shares to
separate accounts to serve as an investment medium for variable life insurance
policies and for variable annuity contracts. Thus, the Funds serve as an
investment medium for both variable life insurance policies and variable annuity
contracts. This is called "mixed funding." The Company currently does not
foresee any disadvantages to Policy Owners arising from either mixed or shared
funding; however, due to differences in tax treatment or other considerations,
it is theoretically possible that the interests of owners of various contracts
for which the Funds serve as an investment medium might at some time be in
conflict. However, the Company's and the MONY Series Fund's Boards of Directors,
the Accumulation Trust's Board of Trustees, and any other insurance companies
that participate in the Funds are required to monitor events in order to
identify any material conflicts that arise from the use of the Funds for mixed
and/or shared funding. The Funds' Boards are required to determine what action,
if any, should be taken in the event of such a conflict. If such a conflict were
to occur, the Company might be required to withdraw the investment of one or
more of its separate accounts from the Funds. This might force the Funds to sell
securities at disadvantageous prices.
A summary of the investment objective of each of the Portfolios of the
Funds is described below. There can be no assurance that any Portfolio will
achieve its objective. More detailed information is contained in the
accompanying prospectus of each Fund, including information on the risks
associated with the investment and investment techniques of each of the
Portfolios.
THE FUNDS' PROSPECTUSES ACCOMPANY THIS PROSPECTUS AND SHOULD BE
READ CAREFULLY BEFORE INVESTING.
THE MONEY MARKET PORTFOLIO
The investment objective of the Money Market Portfolio is to seek maximum
current income consistent with preservation of capital and maintenance of
liquidity. The Money Market Portfolio attempts to achieve this objective by
investing in money market instruments. MONY Series Fund offers this Portfolio.
THE GOVERNMENT SECURITIES PORTFOLIO
The investment objective of the Government Securities Portfolio is the
maximum current income over the intermediate term consistent with the
preservation of capital, through investment in highly-rated debt securities,
U.S. Government obligations, and money market instruments, with a dollar
weighted average life of up to ten years at the time of purchase. MONY Series
Fund offers this Portfolio.
THE INTERMEDIATE BOND PORTFOLIO
The investment objective of the Intermediate Bond Portfolio is to maximize
income over the intermediate term consistent with the preservation of capital.
The Portfolio seeks to achieve this objective by investing in highly rated debt
securities, U.S. Government obligations, and money market instruments, together
having a dollar-weighted average life of between 4 and 8 years. MONY Series Fund
offers this Portfolio.
THE LONG TERM BOND PORTFOLIO
The investment objective of the Long Term Bond Portfolio is to maximize
income over the longer term consistent with preservation of capital. The
Portfolio seeks to achieve its objective by investing in highly-rated debt
securities, U.S. Government obligations, and money market instruments, together
having a dollar-weighted average life of more than 8 years. MONY Series Fund
offers this Portfolio.
13
<PAGE> 19
THE EQUITY PORTFOLIO
The investment objective of the Equity Portfolio is long-term capital
appreciation. The Portfolio seeks to achieve this investment objective by
investing in a diversified portfolio of primarily equity securities selected on
the basis of a value-oriented approach to investing. The Accumulation Trust
offers this Portfolio.
THE SMALL CAP PORTFOLIO
The Small Cap Portfolio seeks capital appreciation. The Portfolio pursues
its investment objective by investing in a diversified portfolio of primarily
equity securities of companies with market capitalization of under $1 billion.
The Accumulation Trust offers this Portfolio.
THE MANAGED PORTFOLIO
The investment objective of the Managed Portfolio is to provide growth of
capital over time. The Portfolio seeks to achieve this investment objective by
investing in a portfolio consisting of common stocks, bonds and cash
equivalents, the percentage of which will vary over time based on the investment
manager's assessment of the relative investment values. The Accumulation Trust
offers this Portfolio.
THE INTERNATIONAL GROWTH PORTFOLIO
The investment objective of the International Growth Portfolio is to
provide capital appreciation, primarily through a diversified portfolio of
non-United States equity securities. The Accumulation Trust offers this
portfolio.
THE HIGH YIELD BOND PORTFOLIO
The investment objective of the High Yield Bond Portfolio is to provide
maximum current income, primarily from debt securities that are rated Ba or
lower by Moody's Investors Service, Inc. or BB or lower by Standard & Poor's
Corporation. The Accumulation Trust offers this portfolio.
THE POLICY
The variable life insurance benefits of the Policies are funded through the
Policy Owner's Fund Value in the Variable Account and the Guaranteed Interest
Account. The information included below describes the benefits, features,
charges, and other major provisions of the Policies.
APPLICATION FOR A POLICY
The Policy is designed to meet the needs of individuals and for
corporations who wish to provide coverage and benefits for key employees.
Individuals wishing to purchase the Policy must complete an application and
personally deliver it to a licensed agent of the Company, who is also a
registered representative of MONY Securities Corp. ("MSC"). The licensed agent
will then submit the completed application to the Company. The Policy may also
be sold through other broker-dealers authorized by MSC and applicable law to do
so. Except for Policies offered or issued for delivery in the State of Maryland,
a Policy can be issued on the life of an Insured for Ages up to and including
Age 80 with evidence of insurability satisfactory to the Company. Policies
offered or issued for delivery in the State of Maryland may only be issued on
the life of an Insured for Ages up to and including Age 70 with evidence of
insurability satisfactory to the Company. The Insured's Age is calculated as of
the Insured's birthday nearest the Policy Date. Acceptance is subject to the
Company's underwriting rules, and the Company reserves the right to request
additional information and to reject an application.
The minimum Specified Amount which may be applied for is $100,000. However,
the Company also reserves the right to revise its rules from time to time to
specify a different minimum Specified Amount at issue for subsequent issued
Policies.
14
<PAGE> 20
Each Policy is issued with a Policy Date, which is the date used to
determine the Monthly Anniversary Day, Policy Months, Policy Years, and Policy
monthly, quarterly, semiannual and annual Anniversaries. The Policy Date will be
stated on Page 1 of the Policy. The Policy Date will normally be the later of
the date that delivery of the Policy is authorized by the Company (the "Policy
Release Date") or the Policy Date requested in the application. Except as
provided under the temporary insurance procedures defined below, no premiums may
be paid with the application.
TEMPORARY INSURANCE COVERAGE
If an applicant desires interim insurance coverage prior to the Policy
Release Date, a Temporary Insurance Agreement is available. At the time an
application is accepted by a licensed agent of the Company, the applicant must
satisfactorily complete and sign the Temporary Insurance Agreement Form and
submit payment for at least one Minimum Monthly Premium for the Policy as
applied for. Coverage commences under the Temporary Insurance Agreement on the
date the Temporary Insurance Agreement Form is signed and the required premium
amount has been paid, or if later, the requested Policy Date. See "Premium
Flexibility," page 16.
Once the coverage under the Temporary Insurance Agreement commences, it
generally will run until the Policy Release Date, but in no event for more than
90 days from the date the Temporary Insurance Agreement Form is signed. In
addition, this temporary insurance coverage will also cease on the earliest of
(a) the 45th day after the Temporary Insurance Agreement Form is signed if the
last of the medical exams and tests initially required under the Company's
published underwriting rules has not been completed by the applicant, (b) 5 days
after the Company sends notice to the applicant that it declines to issue any
Policy, (c) the date the applicant informs the Company that the Policy will be
refused, (d) the Policy Release Date, if the Policy is issued as applied for, or
(e) where the Policy is issued other than as applied for, the earlier of the
15th day after the Policy Release Date or the date the Policy takes effect. If
death occurs during the period of temporary coverage, the death benefit will be
(i) the lesser of $500,000 or the insurance coverage applied for on the life of
the proposed Insured (including any optional Riders), less (ii) the Deductions
from Premium and the Monthly Deduction due prior to the date of death.
During the period before the Policy Release Date, premiums paid with the
application pursuant to the Temporary Insurance Agreement will be held in the
Company's General Account. Except as provided below, interest will be credited
on the premium (less any Deductions from Premiums) held in the Company's General
Account. The interest rate will be set by the Company, but will not be less than
5 percent per year. If the Policy is issued and accepted, these amounts will be
applied to the Policy. These premiums will be returned (without interest) to the
applicant within 5 days after:
(1) the date the applicant informs the Company at or before the Policy
Release Date (or where the Policy is authorized for delivery other than as
applied for, on or before the 15th day after the Policy Release Date) that
the Policy will be refused; or
(2) the date which is 30 days after the application is signed, if any
medical exams or tests required by the Company have not yet been completed.
Premiums will be returned with interest to the applicant within 5 days after the
date the Company sends notice to the applicant declining to issue any Policy on
the Insured.
INITIAL PREMIUM PAYMENT
If the application is approved and the Policy is subsequently issued, the
balance due (if any) of the first Scheduled Premium Payment, as specified in the
Policy, is payable upon delivery of the Policy. The Policy will take effect on
the date the Policy is accepted by the applicant and the initial Scheduled
Premium Payment has been paid, or the Policy Date requested in the application,
if later. If a specific Policy Date has not been requested or if the Policy Date
requested is prior to the Policy Release Date, upon receipt of the balance due
(if any), the amount attributable to the Policy (including any premiums held in
the General Account under the Temporary Insurance Agreement plus any interest
credited in the General Account, less Deductions from
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<PAGE> 21
Premiums) will be transferred to the Money Market Subaccount of the Variable
Account on the Policy Release Date pending expiration of the applicable Free
Look Period. After such transfer, the Monthly Deduction due prior to or on the
Policy Release Date will be made. Upon expiration of the Free Look Period,
amounts to be allocated to the Subaccounts of the Variable Account will be
allocated to those Subaccounts and amounts to be allocated to the Guaranteed
Interest Account will be allocated to that Account. (See "Right to Examine A
Policy -- Free Look Period," below.)
POLICY DATE
If a specific Policy Date has been requested which is later than the Policy
Release Date, the amount attributable to the Policy will be initially held in
the General Account until the Policy Date. On the Policy Date, the amount
attributable to the Policy less any Deductions from Premiums for the period
commencing with the Policy Date will be transferred to the Money Market
Subaccount of the Variable Account pending expiration of the applicable Free
Look Period. Upon the expiration of the applicable Free Look Period, amounts
allocated to the Subaccounts of the Variable Account will be allocated to those
Subaccounts and amounts allocated to the Guaranteed Interest Account will be
allocated to that Account. See "Right to Examine A Policy -- Free Look Period,"
below.
Subject to the Company's approval, a Policy may be backdated, but the
Policy Date may not be more than six months (a shorter period is required in
certain states) prior to the date of the application. Backdating can be
advantageous if the Insured's lower issue Age results in lower cost of insurance
rates. If the Policy is backdated, the initial Scheduled Premium Payment will
include sufficient premium to cover additional charges incurred for the
backdating period, since monthly deductions are made for the period the Policy
Date is backdated.
RISK CLASSIFICATION
Insureds are assigned to underwriting (risk) classes which are used in
calculating the cost of insurance and certain Rider charges. In assigning
Insureds to underwriting classes, the Company will normally use the medical or
paramedical underwriting method, which may require a medical examination of a
proposed Insured, although other forms of underwriting may be used when deemed
appropriate by the Company.
RIGHT TO EXAMINE A POLICY -- FREE LOOK PERIOD
The Free Look Period follows the application for the Policy and its
issuance to the Policy Owner, and it also follows any application for an
increase in Specified Amount and the issuance of an endorsement increasing the
Specified Amount. The period runs to the latest of the date which is (a) 45
days after Part I of the application is signed, (b) 10 days (or longer in
certain states) after the Policy Owner receives the Policy, or the endorsement
of an increase in Specified Amount, as the case may be, or (c) 10 days after the
Company mails or personally delivers a notice of withdrawal right to the Policy
Owner. During the Free Look Period which follows the issuance of the Policy, the
Policy Owner may cancel the Policy and receive a refund of the full amount of
the premium paid. During a Free Look Period following any increase in Specified
Amount, the Policy Owner has a right, in effect, to cancel the increase in
Specified Amount and have the charges and deductions attributable to such
increase added to the Fund Value. During the Free Look Period, net premiums will
be allocated to the Money Market Subaccount, which invests in the Money Market
Portfolio of the MONY Series Fund. See "Allocation of Net Premiums," page 19.
PREMIUMS
The Policy is a flexible premium policy, and it provides considerable
flexibility, subject to the limitations described below, to pay premiums at the
Policy Owner's discretion.
PREMIUM FLEXIBILITY
The Company requires a Policy Owner to pay an amount equal to at least the
Minimum Monthly Premium to place the Policy in force. If the premiums are to be
paid less often than monthly, the premium
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<PAGE> 22
required to place the Policy in force is equal to the Minimum Monthly Premium
multiplied by 12 divided by the frequency of Scheduled Premium Payments. This
Minimum Monthly Premium will be based upon the Policy's Specified Amount and the
Age, smoking status, gender (unless unisex cost of insurance rates apply, see
"Cost of Insurance," page 32), and underwriting class of the Insured, and any
Riders added to the Policy. The Minimum Monthly Premium will be shown in the
Policy. Thereafter, subject to the limitations described below, a Policy Owner
may choose the amount and frequency of premium payments. The Policy, therefore,
provides the Policy Owner with the flexibility to vary premium payments to
reflect varying financial conditions.
If on each Monthly Anniversary Day during the first two Policy years, the
sum of all premiums paid, less any Outstanding Debt and less any Partial
Surrenders (and their fees), is greater than or equal to the Minimum Monthly
Premium times the number of completed Policy months, the Policy is guaranteed
not to lapse, regardless of the Policy's Cash Value less Outstanding Debt. See
"Grace Period and Lapse," page 29.
SCHEDULED PREMIUM PAYMENTS (PLANNED PREMIUM PAYMENTS)
When applying for a Policy, a Policy Owner will determine a Scheduled
Premium Payment that provides for the payment of level premiums at fixed
intervals over a specified period of time. Each Policy Owner will receive a
premium reminder notice for the Scheduled Premium Payment amount on either an
annual, semiannual, or quarterly basis, at the option of the Policy Owner. The
minimum Scheduled Premium Payment is equal to the Minimum Monthly Premium
multiplied by 12 divided by the Scheduled Premium Payment frequency. Although
reminder notices will be sent, the Policy Owner may not be required to pay
Scheduled Premium Payments. (For Policies offered or issued for delivery in the
Commonwealth of Massachusetts, the Policy Owner will determine a Planned Premium
Payment that provides for the payment of level premiums at selected intervals
over a specified period of time. For those Policy Owners, the term "Scheduled
Premium Payment" used in this Prospectus, refers to Planned Premium Payments.)
Premiums, other than the first, may also be paid monthly under the
MONYMatic plan where the Policy Owner authorizes the Company to withdraw
premiums from the Owner's checking account each month. Based on the Policy Date,
up to two Minimum Monthly Premiums must be paid in cash before the MONYMatic
plan will be accepted by the Company. Under the MONYMatic plan, the day on which
premiums are withdrawn will be the 15th of the month. Payment of the Scheduled
Premium Payments will not guarantee that a Policy will remain in force. Instead,
unless one of the Guaranteed Death Benefit Riders has been elected and all
requirements have been met, the duration of the Policy depends upon the Policy's
Cash Value, less any Outstanding Debt. In addition during the first two Policy
Years, if on each Monthly Anniversary Day the sum of premiums paid, less the sum
of Partial Surrenders (and any fees relating thereto) and any Outstanding Debt
is greater than or equal to the Minimum Monthly Premium times the number of
completed Policy Months, the Policy is guaranteed not to lapse, regardless of
the Policy's Cash Value less Outstanding Debt. Even if the Scheduled Premium
Payments are made, if either of these two provisions do not apply, the Policy
will lapse any time the Cash Value less Outstanding Debt is insufficient to pay
the current monthly deduction and a Grace Period expires without sufficient
payment.
CHOICE OF GUARANTEED DEATH BENEFIT RIDERS
When application for the Policy is made, the applicant will also have the
opportunity to choose from one of two Guaranteed Death Benefit Riders, which may
extend the period that the Specified Amount of the Policy and certain Rider
coverages will remain in effect. The two options vary primarily by the length of
the Guarantee Period. The available Guarantee Periods are: (i) to the Insured's
Age 75 or ten years from the Policy Date, whichever is later, (the "Ten Year/Age
75 Guarantee Period") or (ii) to the Maturity Date (the "Lifetime Guarantee
Period"). An extra charge will be deducted from the Fund Value each month during
the Guarantee Period. See "Guaranteed Death Benefits," page 22.
In the event that on any Monthly Anniversary Day the Cash Value exceeds
Outstanding Debt, the Guaranteed Death Benefit Rider will keep the Policy in
force provided that the cumulative Monthly Guarantee Premium due to date has
been paid. This amount depends on which of the two Guarantee Periods
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<PAGE> 23
are chosen, as well as the Specified Amount of the Policy, the Insured's age,
gender, smoking status and underwriting class, and any additional insurance
benefits added by Rider. For Policies with no Rider coverage other than the
Guaranteed Death Benefit Rider, the Monthly Guarantee Premium times 12 for the
Lifetime Guarantee Period will be equal to the guideline annual premium for
Death Benefit Option I determined in accordance with the federal income tax law
definition of life insurance. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 36. The Monthly Guarantee
Premium times 12 for the Ten Year/Age 75 Guarantee Period will be the Target
Premium that is used to determine the maximum sales Fund Charge. See "Fund
Charge," page 33. The guideline annual premium will always be higher than the
Target Premium, so the required premium level for the Lifetime Guarantee Period
will be greater than that required for the Ten Year/Age 75 Guarantee Period.
Adding other optional insurance benefits by Rider to the Policy will increase
the Monthly Guarantee Premium above those indicated.
It is important to consider the Guaranteed Death Benefit Rider premium
requirements when setting the amount of the Scheduled Premium Payments for the
Policy. (See Appendix C and D.)
The Guaranteed Death Benefit Rider is not available on Policies offered or
issued for delivery to residents of the Commonwealth of Massachusetts or the
State of Texas.
MODIFIED ENDOWMENT CONTRACTS
The amount, frequency and period of time over which a Policy Owner pays
premiums may affect whether the Policy will be classified as a modified
endowment contract, which is a type of life insurance contract subject to
different tax treatment for certain pre-death distributions than conventional
life insurance contracts. See "Federal Income Tax Considerations -- Modified
Endowment Contracts," page 37.
UNSCHEDULED PREMIUM PAYMENTS
Generally, the Policy Owner can make unscheduled premium payments at any
time and in any amount as long as each payment is at least $250.00. The Company
may reject or limit any premium payment (Scheduled or unscheduled) that would
result in an immediate increase in the death benefit payable, although such a
premium may be accepted with satisfactory evidence of insurability. A premium
payment would result in an immediate increase if the death benefit under a
Policy is, or upon acceptance of the premium would be, equal to a Policy Owner's
Fund Value multiplied by a death benefit percentage as a result of the federal
income tax law definition of life insurance. See "Death Benefits under the
Policy," page 19 and "Federal Income Tax Considerations -- Definition of Life
Insurance," page 36. If satisfactory evidence of insurability is not received,
the payment, or a portion thereof may be returned. In addition, all or a portion
of a premium payment will be rejected and returned to the Policy Owner if it
would exceed the maximum premium limitations prescribed by the federal income
tax law definition of life insurance.
Unscheduled premium payments will be treated as premium payments, and not
as a repayment of Outstanding Debt, unless a Policy Owner requests otherwise. If
the Policy Owner does request that the payment be treated as a repayment of
Outstanding Debt, any portion of a payment that exceeds the amount of
Outstanding Debt will be applied to the Fund Value. Applicable taxes and sales
charges are not deducted from payments used as a repayment of Outstanding Debt,
but are deducted from any payment which constitutes a premium payment.
PREMIUM PAYMENTS AFFECT THE CONTINUATION OF THE POLICY
If premium payments are stopped, temporarily or permanently, the Policy
will continue in effect until the Cash Value less any Outstanding Debt can no
longer cover the Monthly Deductions from the Fund Value for the Policy and any
optional insurance benefits added by Rider. At that point, the Policy will
lapse. See "Grace Period and Lapse," page 29. If the Minimum Monthly Premium
requirements are satisfied during the first two Policy years, the Policy is
guaranteed not to lapse, regardless of the Policy's Cash Value less Outstanding
Debt during this two year period. See "Premiums -- Premium Flexibility," page
16. If one of the Guaranteed Death Benefit Riders is in effect, the Specified
Amount of the Policy and certain Rider coverages will remain
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<PAGE> 24
in force until the end of the Guarantee Period if premium payments required by
the Rider have been made and Cash Value exceeds Outstanding Debt. See
"Guaranteed Death Benefits," page 22.
Certain charges will be deducted from each premium payment. See "Charges
and Deductions," page 30. The remainder of the premium, referred to as the "net
premium", will be allocated as described below under "Allocation of Net
Premiums."
ALLOCATION OF NET PREMIUMS
In the application for the Policy, the Policy Owner selects the Subaccounts
of the Variable Account or the Guaranteed Interest Account to which net premium
payments will be allocated. During the Free Look Period, net premiums will be
allocated to the Money Market Subaccount, which invests in the Money Market
Portfolio of the MONY Series Fund. The Fund Value will be automatically
allocated according to the Policy Owner's instructions contained in the
application at the end of the Free Look Period. Net premiums received after the
Free Look Period will be allocated upon receipt among the Subaccounts of the
Variable Account and the Guaranteed Interest Account according to the Policy
Owner's most recent instructions. If instructions for allocation of premiums are
not included in the application or are incomplete, all allocations will be made
to the Money Market Subaccount until a subsequent notification of allocation
percentages is received.
Net premiums may be allocated in whole percentages to any number of
Subaccounts and to the Guaranteed Interest Account, provided that no allocation
may be for less than 10% of a net premium. Allocation percentages must sum to
100%. Available allocation alternatives include the nine Subaccounts and the
Guaranteed Interest Account.
A Policy Owner may change the allocation of net premiums at any time by
submitting a proper written request to the Company's Home Office. In addition,
changes in net premium allocation instructions may be made by telephone if an
authorization for telephone transfer form has been properly completed, signed
and filed at the Company's Syracuse Operations Center. The Company reserves the
right to discontinue telephone net premium allocation instructions. See
"Telephone Transfer Privileges", page 47. The revised allocation percentages
will be applied within seven days from receipt of notification.
Unscheduled premium payments may be allocated either by percentage or by
dollar amount. If the allocation is expressed in dollar amounts, the 10% limit
on allocation percentages does not apply.
DEATH BENEFITS UNDER THE POLICY
When the Policy is issued, the Company will determine the initial amount of
insurance based on the instructions provided in the application. That amount
will be shown on the specifications page of the Policy and is called the
"Specified Amount." The minimum Specified Amount is $100,000.
For so long as the Policy remains in force, the Company will, upon proof of
the death of an Insured, pay death benefit proceeds to a named Beneficiary.
Death benefit proceeds will consist of the death benefit under the Policy, plus
any insurance proceeds provided by Rider, less any Outstanding Debt reduced by
any Unearned Loan Interest (and, if in the Grace Period, further reduced by any
overdue charges).
Each Policy Owner may select one of two death benefit Options: Option I or
Option II. Generally the applicant designates the death benefit Option in the
application. If no Option is designated, Option I will be assumed by the Company
to have been selected. Subject to certain restrictions, the Policy Owner can
change the death benefit Option selected. So long as the Policy remains in
force, the death benefit under either Option will never be less than the
Specified Amount of the Policy.
OPTION I
Under Option I, the death benefit will be equal to the Specified Amount of
the Policy plus the increase in Fund Value since the last Monthly Anniversary
Day or, if greater, the Fund Value on the date of death plus the Fund Value
(determined as of the end of the Monthly Anniversary Day concurrent with or
prior to the date of death) multiplied by a Death Benefit Percentage. The death
benefit percentages vary according to the
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<PAGE> 25
Age of the Insured and will be at least equal to the percentage defined in the
Internal Revenue Code, which addresses the definition of a life insurance policy
for tax purposes. See "Federal Income Tax Considerations -- Definition of Life
Insurance," page 36. The Death Benefit Percentage is 150% for an Insured at Age
40 or under, and it declines for older Insureds. A table showing the Death
Benefit Percentages is in Appendix A to this prospectus and in the Policy.
Policy Owners who are seeking to have favorable investment performance reflected
in increasing Fund Value, and not in increasing insurance coverage, should
choose Option I.
OPTION II
Under Option II, the death benefit will be equal to the Specified Amount of
the Policy plus the Fund Value on the date of death or, if greater, the Fund
Value on the date of death plus the Fund Value (determined as of the end of the
Monthly Anniversary Day concurrent with or prior to the date of death)
multiplied by a Death Benefit Percentage. The Death Benefit Percentage is the
same as that used in connection with Option I and is stated in Appendix A. The
death benefit under Option II will always vary as Fund Value varies. Therefore,
Policy Owners who seek to have favorable investment performance reflected in
increased insurance coverage should choose Option II.
EXAMPLES OF OPTIONS I AND II
The following examples demonstrate the determination of death benefits
under Options I and II. The examples show three Policies -- Policies 1, 2, and
3 -- with the same Specified Amount, but Fund Values that vary as shown, and
which assume an Insured is Age 40 at the time of death and that there is no
Outstanding Debt. The date of death is also assumed to be on a Monthly
Anniversary Day.
<TABLE>
<CAPTION>
POLICY 1 POLICY 2 POLICY 3
-------- -------- --------
<S> <C> <C> <C>
Specified Amount................................... $100,000 $100,000 $100,000
Fund Value on Date of Death........................ $ 35,000 $ 60,000 $ 85,000
Death Benefit Percentage........................... 150% 150% 150%
Death Benefit under Option I....................... $100,000 $150,000 $212,500
Death Benefit under Option II...................... $135,000 $160,000 $212,500
</TABLE>
Under Option I, the death benefit for Policy 1 is equal to $100,000 since
the death benefit is the greater of the Specified Amount ($100,000) or the Fund
Value plus the Fund Value multiplied by the Death Benefit Percentage ($35,000
plus $35,000 X 150%=$87,500). In contrast, for both Policies 2 and 3 under
Option I, the Fund Value plus Fund Value multiplied by the Death Benefit
Percentage ($60,000 plus $60,000 X 150%=$150,000 for Policy 2; $85,000 plus
$85,000 X 150%=$212,500 for Policy 3) is greater than the Specified Amount
($100,000), so the death benefit is equal to the higher value. Under Option II,
the death benefit for Policy 1 is equal to $135,000 since the death benefit is
the greater of Specified Amount plus Fund Value ($100,000 + $35,000=$135,000) or
the Fund Value plus Fund Value multiplied by the Death Benefit Percentage
($35,000 plus $35,000 X 150%=$87,500). Similarly, in Policy 2, Specified Amount
plus Fund Value ($100,000 + $60,000=$160,000) is greater than Fund Value plus
Fund Value multiplied by the Death Benefit Percentage ($60,000 plus
$60,000 X 150%=$150,000). In contrast, in Policy 3, the Fund Value plus Fund
Value multiplied by the Death Benefit Percentage ($85,000 plus
$85,000 X 150%=$212,500) is greater than the Specified Amount plus Fund Value
($100,000 X $85,000=$185,000), so the death benefit is equal to the higher
value.
Death benefit proceeds may be paid to a Beneficiary in a lump sum or under
a payment plan offered under the Policy. The Policy should be consulted for
details.
CHANGES IN DEATH BENEFIT OPTION
A Policy Owner may request that the death benefit under the Policy be
changed from Option I to Option II, or from Option II to Option I. Changes in
the death benefit Option may be made on any Monthly Anniversary Day and should
be made in writing to the Company's Home Office. A change from Option II to
Option I may be made without evidence of insurability; a change from Option I to
Option II will require
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<PAGE> 26
evidence of insurability satisfactory to the Company. The effective date of any
such change requested between Monthly anniversaries will be the next Monthly
Anniversary Day after the change is accepted.
A change in the death benefit from Option I to Option II is accomplished by
reducing the Specified Amount of the Policy by the amount of the Policy's Fund
Value at the date of the change. This maintains the death benefit payable under
Option II at the amount that would have been payable under Option I immediately
prior to the change. Although there is no immediate change in the total death
benefit, the change to Option II will affect the determination of the death
benefit from that point on since the Fund Value will then be added to the new
Specified Amount, and the death benefit will then vary with Fund Value. This
change will not be permitted if it would result in a new Specified Amount of
less than $100,000.
A change in the death benefit from Option II to Option I will result in a
decrease in the death benefit payable under the policy. The Specified Amount of
the Policy remains the same before and after the change; however, the death
benefit is reduced to an amount equal to the Specified Amount. From that point
on, the death benefit will equal the Specified Amount (or, if higher, the Fund
Value times the applicable Death Benefit Percentage, as required by the federal
tax law definition of life insurance). The change in Option will generally
reduce the death benefit payable in the future.
A change in death benefit Option may affect the monthly cost of insurance
charge since this charge varies with the net amount at risk, which generally is
the amount by which the death benefit exceeds Fund Value. See "Cost of
Insurance," page 32. Assuming that the Policy's death benefit is not based on
the Death Benefit Percentage under either Option I or II, changing from Option
II to Option I will generally decrease the net amount at risk, and therefore
decrease the cost of insurance charges. Changing from Option I to Option II will
generally result in a net amount at risk that remains level. Such a change,
however, will result in an increase in the cost of insurance charges over time,
since the cost of insurance rates increase with the Insured's Age.
CHANGES IN SPECIFIED AMOUNT
A Policy Owner may request an increase or decrease in the Specified Amount
under a Policy subject to approval from the Company. A change in Specified
Amount may be made at any time after the second Policy anniversary. Increases in
Specified Amount are not permitted on or after the Insured's Age 81. Increasing
the Specified Amount will generally increase the death benefit payable under the
Policy, and decreasing the Specified Amount will generally decrease the death
benefit payable. The amount of change in the death benefit will depend, among
other things, upon the death benefit Option chosen by the Policy Owner and
whether the death benefit under the Policy is being calculated using the Death
Benefit Percentage at the time of the change. Changing the Specified Amount
could affect the subsequent level of the death benefit while the Policy is in
force and the subsequent level of Policy values. For example, an increase in
Specified Amount may increase the net amount at risk under a Policy, which will
increase a Policy Owner's cost of insurance charges over time. Conversely, a
decrease in Specified Amount may decrease the net amount at risk, which will
decrease a Policy Owner's cost of insurance charges over time.
Any request for an increase or decrease in Specified Amount must be made by
written application to the Company's Home Office. It will become effective on
the Monthly Anniversary Day on or next following the Company's acceptance of the
request. If the Policy Owner is not the Insured, the Company may also require
the consent of the Insured before accepting a request.
INCREASES
Additional evidence of insurability satisfactory to the Company will be
required for an increase in Specified Amount. An increase will not be given for
increments of Specified Amount less than $10,000.
A requested increase in the Specified Amount will create a new "coverage
segment" for which cost of insurance and other charges will be computed
separately. See "Charges and Deductions," page 30. In addition, the Fund Charge
associated with the Policy will increase. The Fund Charge for the increase is
calculated in a similar manner as for the original Specified Amount. The Target
Premiums, and the required premiums under the Guaranteed Death Benefit Rider, if
applicable, will also be adjusted prospectively to
21
<PAGE> 27
reflect the increase in Specified Amount. If the Specified Amount is increased
at the same time that a premium payment is received, the increase will be
processed before the premium payment is processed.
If an increase creates a new coverage segment of Specified Amount, premiums
paid after the increase will be allocated to the original and the new coverage
segments in the same proportion that the guideline annual premiums defined by
the federal securities laws for each segment bear to the sum of the guideline
annual premiums for all segments. Fund Value will also be allocated to each
coverage segment.
You will have the right to cancel an increase in the Specified Amount
within the later of (i) 45 days after Part I of the application for the increase
is signed, (ii) ten days (or longer in certain states) after receipt of the
Policy endorsement applicable to the increase, or, (iii) ten days after mailing
or personal delivery of a notice as to the availability of the Free Look
provision. If the increase is canceled, any charges attributable to the increase
will be reversed and then added to your Fund Value, without sales or other
loads. The Policy Fund Charge will also be adjusted to the amount which would
have existed had the increase never taken place.
DECREASES
Any decrease in Specified Amount (whether specifically requested by the
Policy Owner or as a result of a Partial Surrender or a death benefit Option
change) will first be applied to reduce the coverage segments of Specified
Amount associated with the most recent increases, then the next most recent
increases successively, and finally to the original Specified Amount. A decrease
will not be permitted if the Specified Amount would fall below $100,000. A
decrease will not be given if less than $10,000.
If the reduction decreases the Specified Amount during the Fund Charge
period, the Fund Charge on the remaining Specified Amount will be reduced;
however, an amount equal to the reduction in the Fund Charge will be deducted
from the Fund Value. See "Fund Charge," page 33. Target Premiums, and the
required premiums under the Guaranteed Death Benefit Rider, if applicable, will
also be adjusted for the decrease in Specified Amount. If the Specified Amount
is decreased at the same time that a premium payment is received, the decrease
will be processed before the premium payment is processed. Rider coverages may
also be affected by a decrease in Specified Amount.
The Company reserves the right to disallow a requested decrease, and will
not permit a requested decrease, among other reasons, (i) if compliance with the
guideline premium limitations under federal tax law resulting from the requested
decrease would result in immediate termination of the Policy, or (ii) if, to
effect the requested decrease, payments to the Policy Owner would have to be
made from Fund Value for compliance with the guideline premium limitations, and
the amount of such payments would exceed the Surrender Value under the Policy.
If we do not approve a change you have requested, we will send you a written
notice of our decision about making the change. See "Federal Income Tax
Considerations -- Definition of Life Insurance," page 36.
GUARANTEED DEATH BENEFITS
Generally, the length of time the Policy remains in force depends on the
Cash Value less the Outstanding Debt of the Policy. Because the charges that
maintain the Policy are deducted monthly from the Fund Value, coverage will last
as long as the Cash Value less the Outstanding Debt of the Policy is sufficient
to pay these charges. See "Grace Period and Lapse," page 29. The investment
experience of any amounts in the Subaccounts of the Variable Account and the
interest earned in the Guaranteed Interest Account will affect the amount of the
Fund Value and, as a result, the length of time the Policy remains in force
without the payment of additional premiums.
When application for a Policy is made, the Policy Owner will have the
opportunity to choose from one of two Guaranteed Death Benefit Riders, which may
extend the period that the Specified Amount of the Policy and certain other
Rider coverages will remain in effect if the Subaccounts suffer adverse
investment experience. The two options vary primarily by the length of time
which they cover, which is called the Guarantee Period. Premiums required by the
Rider vary depending on the Guarantee Period chosen. See "Choice of Guaranteed
Death Benefit Riders," page 17.
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<PAGE> 28
Although the premiums required under the Rider for the two options are
different, determination as to whether either of the Guaranteed Death Benefit
Riders will remain in effect are similar. On each Monthly Anniversary Day, two
tests will be performed: under the first test Cash Value must exceed Outstanding
Debt; and under the second test (i) the actual premiums paid, less the amount of
any Partial Surrenders (and any fees imposed as a result of the Partial
Surrender) must equal or exceed (ii) the Monthly Guarantee Premium for the Rider
chosen times the number of complete months since the Policy Date. If the Policy
fails to meet either test on any Monthly Anniversary Day, the Guarantee Period,
and therefore the Guaranteed Death Benefit Rider, will terminate. Once
terminated, the Guaranteed Death Benefit Rider can not be reinstated.
There is a Grace Period for this Rider. See "Grace Period and Lapse -- If
Guaranteed Death Benefit Rider Is in Effect", page 30.
There is a charge for the Guaranteed Death Benefit Rider. See "Guaranteed
Death Benefit Charge," page 33. This charge will end at the conclusion of the
Ten Year/Age 75 Guarantee Period if that Rider is chosen, and it will end for
either Rider if at any time the Policy fails the monthly tests.
Please refer to the Policy for additional information on the Guaranteed
Death Benefit Riders.
The Guaranteed Death Benefit Rider is not available on Policies offered or
issued for delivery to residents of the Commonwealth of Massachusetts or the
State of Texas.
OTHER OPTIONAL INSURANCE BENEFITS
Subject to certain requirements, a Policy Owner may elect to add one or
more of the optional insurance benefits described below to the Policy at the
time of application for a Policy. These other optional insurance benefits are
added to the Policy by Rider. A charge will be deducted monthly from the Fund
Value for each optional insurance benefit added to the Policy. See "Charges and
Deductions," page 30. The amounts of these benefits are fully guaranteed at
issue, and they can be canceled by the Policy Owner at any time. Certain
restrictions may apply and are described in the applicable Rider. In addition,
adding or canceling these benefits may have an effect on the Policy's status as
a modified endowment contract. See "Federal Income Tax
Considerations -- Modified Endowment Contracts," page 37. An insurance agent
authorized to sell the Policy can describe these extra benefits further. Samples
of the provisions are available from the Company upon written request.
From time to time we may make available Riders other than those listed
below. Contact an insurance agent authorized to sell the Policy for a complete
list of the Riders available.
WAIVER OF MONTHLY DEDUCTIONS RIDER
This Rider provides that during a covered disability of the Insured, while
the Policy remains in force, the monthly administrative charges, cost of
insurance charges and Rider charges will be waived and therefore not deducted
from the Fund Value. This Rider does not waive the payment of premiums required
by the Guaranteed Death Benefit Rider.
ACCIDENTAL DEATH BENEFIT RIDER
This Rider will pay the benefit amount selected if the Insured dies as a
result of an accident after the Insured's Age 5 and prior to Age 70. A benefit
equal to twice the Rider amount is payable if accidental death occurs as the
result of riding as a passenger in a public conveyance then being operated
commercially to transport passengers for hire. The maximum amount of coverage is
the initial specified amount but not more than the greater of $100,000 total
coverage of all such insurance in the Company or in any insurance company
affiliate of the Company nor more than $200,000 of all such coverages,
regardless of insurance companies issuing such coverages.
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PURCHASE OPTION RIDER
This Rider provides the option to purchase up to $50,000 of additional
coverage without providing additional evidence that the Insured remains
insurable. Increases under this Rider may be added on the Policy anniversary
when the Insured's Age is 25, 28, 31, 34, 37 and 40. In addition, the future
right to purchase new insurance on the next option date may be advanced and
exercised immediately upon marriage of the Insured, or the birth of a child of
the Insured, or upon the legal adoption of a child by the Insured. A period of
term insurance is automatically provided starting on the date of the specified
event. The interim term insurance, and the option to accelerate the purchase of
the coverage expires 60 days after the specified event.
SPOUSE'S TERM RIDER
This Rider provides for term insurance benefits on the life of the
Insured's spouse, to the spouse's Age 80. The minimum amount of coverage is
$25,000 and the maximum amount of coverage equals the Specified Amount of the
Policy. The Rider coverage may be converted without evidence of insurability to
any level premium, level face amount permanent plan of insurance offered by the
Company at any time prior to the Spouse's Age 65 or 5 years from the issue of
the Rider, if later.
CHILDREN'S TERM INSURANCE RIDER
This Rider provides term insurance coverage on the lives of the children of
the Insured under age 18 which continues to the Policy anniversary nearest the
Insured's Age 65 or the child's 22nd birthday, if earlier. It provides coverage
for children upon birth or legal adoption without presenting evidence of
insurability. Coverage is limited to the lesser of the initial Specified Amount
or $10,000. Upon the expiration of the Rider coverage it may be converted to any
level premium, level face amount permanent plan of insurance then offered by the
Company.
BENEFITS AT MATURITY
If the Insured is living on the Maturity Date, the Company will pay to the
Policy Owner, as an endowment benefit, the Surrender Value of the Policy.
Payment ordinarily will be made within seven days of the Policy Anniversary,
although payments may be postponed in certain circumstances. See "Payments,"
page 45.
POLICY VALUES
FUND VALUE
The Fund Value is the sum of the amounts under the Policy held in each
Subaccount of the Variable Account and any Guaranteed Interest Account, as well
as the amount set aside in the Company's Loan Account, and any interest thereon,
to secure Outstanding Debt.
On each Valuation Date, the portion of the Fund Value allocated to any
particular Subaccount will be adjusted to reflect the investment experience of
that Subaccount. On each Monthly Anniversary Day, the portion of the Fund Value
allocated to a particular Subaccount also will be adjusted to reflect the
assessment of the monthly deduction. See "Determination of Fund Value," page 25.
No minimum amount of Fund Value is guaranteed. A Policy Owner bears the risk for
the investment experience of Fund Value allocated to the Subaccounts.
CASH VALUE
The Cash Value of the Policy equals the Fund Value less the Fund Charge.
Thus, the Fund Value will exceed the Policy's Cash Value by the amount of the
Fund Charge. Once the Fund Charge has expired, the Fund Value will equal the
Cash Value.
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SURRENDER VALUE
The Surrender Value of the Policy equals the Cash Value less any
Outstanding Debt reduced by any Unearned Loan Interest. The Owner can surrender
a Policy at any time while the Insured is living and receive its Surrender
Value. See "Full Surrender," page 28.
DETERMINATION OF FUND VALUE
Although the death benefit under a Policy can never be less than the
Policy's Specified Amount, the Fund Value will vary depending upon several
factors, including the investment performance of the Subaccounts to which Fund
Value has been allocated, payment of premiums, the amount of any Outstanding
Debt, Partial Surrenders, Preferred Partial Surrenders, and the charges assessed
in connection with the Policy. There is no guaranteed minimum Fund Value and the
Policy Owner bears the entire investment risk relating to the investment
performance of Fund Value allocated to the Subaccounts.
The amounts allocated to the Subaccounts will be invested in shares of the
corresponding Portfolios of the Funds. The value of the Subaccounts will reflect
the investment experience of the corresponding Portfolio. The investment
experience reflects the investment income, realized and unrealized capital gains
and losses and expenses of the Portfolio and any dividends or distributions
declared by a Portfolio. Any dividends or distributions from any Portfolio of
the Funds will be automatically reinvested in shares of the same Portfolio,
unless the Company, on behalf of the Variable Account, elects otherwise. The
Subaccount value will also reflect the mortality and expense risk charges the
Company makes each day to the Variable Account.
Amounts allocated to the Subaccounts are measured in terms of Units, which
are a measure of value used for bookkeeping purposes. The value of amounts
invested in each Subaccount is represented by the value of the Units credited to
the Policy for that Subaccount. On any given day, the amount in a Subaccount of
the Variable Account is equal to the Unit value times the number of Units
credited to the Policy in that Subaccount. The Units of each Subaccount will
have different Unit values.
Units of a Subaccount are purchased (credited) whenever premiums or
transfer amounts (including transfers from the Loan Account) are allocated to
that Subaccount. Units are redeemed (debited) to make Partial Surrenders,
Preferred Partial Surrenders, to transfer amounts from a Subaccount (including
transfers to the Loan Account), and to pay the death benefit when the Insured
dies. Units are also redeemed to pay the monthly deductions from the Policy's
Fund Value, for Policy transaction charges, and to pay Fund Charges, if any. The
number of Units purchased or redeemed in connection with any such transaction is
determined by dividing the dollar amount of such transaction by the Unit Value
of the affected Subaccount, calculated after the close of business that day. The
number of Units changes only as a result of Policy transactions or charges; the
number of Units credited will not change because of subsequent changes in Unit
Value.
Transactions are processed as of the Transaction Date. The Transaction Date
is the date a premium or an acceptable written or telephone request is received
at the Home Office. If the premium or request reaches the Home Office on a day
which is not a Valuation Date, or after the close of business on a Valuation
Date (that is, after 4:00 p.m. Eastern Time), the Transaction Date will be the
next succeeding Valuation Date. All Policy transactions are performed as of a
Valuation Date. If a Transaction Date or Monthly Anniversary Day occurs on a day
other than a Valuation Date (e.g., on a Saturday), the calculation will take
place on the next Valuation date (e.g., on the following Monday).
CALCULATING UNIT VALUES FOR EACH SUBACCOUNT
The Unit Value of a Subaccount on any Valuation Date is calculated by the
Company on every Valuation Date as follows:
1. Calculate the value of the shares of the Portfolio belonging to the
Subaccount as of the close of business that Valuation Date (before giving
effect to any Policy transactions for that day, such as premium payments or
surrenders). For this purpose, the Net Asset Value per share reported to
the Company by the managers of the Portfolio is used.
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2. Add the value of any dividends or capital gains distributions
declared and reinvested by the Portfolio during the Valuation Period.
Subtract from this amount a charge for taxes, if any.
3. Subtract a charge for the mortality and expense risk assumed by the
Company under the Policy. See "Daily Deductions From the Variable
Account -- Mortality and Expense Risk Charge", page 31. If the previous day
was not a Valuation Date, then the charge is adjusted for the additional
days between valuations.
4. Divide the resulting amount by the number of Units held in the
Subaccount on the Valuation Date before the purchase or redemption of any
Units on that Date.
The Unit Value of each Subaccount on its first Valuation Date was set at $10.00.
TRANSFER OF FUND VALUE
Fund Value may be transferred after the Free Look Period among the
Subaccounts by the Policy Owner upon proper written request to the Company's
Home Office. Transfers may be made by telephone if an authorization for
telephone transfer form has been properly completed and signed and filed at the
Company's Syracuse Operations Center. See "Telephone Transfer Privileges," page
47. Currently, there are no limitations on the number of transfers between
Subaccounts, no minimum amount required for a transfer, nor any minimum amount
required to remain in a given Subaccount after a transfer. Further, no transfer
may be made if a Policy is in the Grace Period and a payment required to avoid
lapse is not paid. See "Grace Period and Lapse," page 29. No charges are
currently imposed upon such transfers. The Company reserves the right, however,
at a future date to assess a $25 transfer charge on Policy transfers in excess
of four in any Policy year and to discontinue telephone transfers. For Policies
issued for delivery to residents of the Commonwealth of Pennsylvania, the
Company guarantees that no transfer charge will be imposed on transfers made
within one year from the date the Policy is issued.
Fund Value may also be transferred after the Free Look Period and within
specified limits from the Subaccounts to the Guaranteed Interest Account;
however, such a transfer will only be permitted in the Policy month following a
Policy Anniversary. Transfers from the Guaranteed Interest Account to the
Subaccounts are also restricted as described in "The Guaranteed Interest
Account," page 42.
RIGHT TO EXCHANGE POLICY
During the first 24 months following the Policy Date or an increase in the
Specified Amount, the Policy Owner may exercise the right to exchange the Policy
from one in which the investment experience is not guaranteed into a guaranteed
Policy. This is accomplished by the transfer of the entire amount in the
Subaccounts of the Variable Account to the Guaranteed Interest Account, and the
allocation of all future premium payments to the Guaranteed Interest Account.
This will, in effect, serve as an exchange of the Policy for the equivalent of a
flexible premium universal life insurance policy. No charge will be imposed on
the transfer in exercising this exchange privilege. See "The Guaranteed Interest
Account," page 42.
POLICY LOANS
The Policy Owner may borrow money from the Company at any time using the
Policy as the only security for the loan by submitting a proper written request
to the Company's Home Office. A loan may be taken any time a Policy has a
positive Cash Value. The minimum loan that can be taken is $250. The maximum
amount that can be borrowed at any time is 90% of the Cash Value of the Policy
less any Outstanding Debt. (If the loan is requested on a Monthly Anniversary
Day, the maximum loan amount is further reduced by the monthly deduction due on
that day.) The Outstanding Debt is the cumulative amount of outstanding loans
and loan interest payable to the Company at any time.
Loan interest is payable in advance at an annual rate of 5.4%. Since
interest is payable in advance, a Policy loan will generate Outstanding Debt
which exceeds the loan amount. For example, a $10,000 loan taken on the first
day of the Policy year will generate Outstanding Debt of $10,575. Interest on
the full amount of any Outstanding Debt is due for each subsequent Policy year
on the Policy Anniversary, until the
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<PAGE> 32
Outstanding Debt is repaid. If interest is not paid when due, it will be added
to the amount of the Outstanding Debt.
The Owner may repay all or part of the Outstanding Debt at any time while
the Policy is in force. Only payments indicated as loan or interest payments
will be treated as such. Loan repayments reduce the Outstanding Debt by the
amount of the payment plus a factor reflecting the interest previously paid in
advance for that Policy year on the Outstanding Debt. For example, a loan
repayment of $10,000 on the first day of the Policy year will reduce the
Outstanding Debt by $10,575. The difference between the loan repayment and the
reduction in the Outstanding Debt is referred to as Unearned Loan Interest. If a
loan repayment is made which exceeds the Outstanding Debt, the excess will be
applied as a Scheduled Premium Payment.
When a Policy Owner takes a loan, an amount equal to the loan is
transferred out of the Policy Owner's Fund Value in the Subaccounts and the
Guaranteed Interest Account into the Loan Account to secure the loan. The Policy
Owner may, within certain limits, specify the amount or the percentage of the
loan amount to be deducted from the Subaccounts. The maximum portion of the loan
which may be allocated to the Guaranteed Interest Account is equal to the
Guaranteed Interest Account's prorated portion of the loan based on the Fund
Values on the date of the loan. If the Policy Owner does not specify the source
of the transfer, or if the transfer instructions are incorrect, loan amounts
will be deducted from the Subaccounts and the Guaranteed Interest Account in the
proportion that each bears to the Fund Value less Outstanding Debt. Each Policy
Anniversary, an amount equal to the loan interest due and unpaid for the Policy
Year will be transferred to the Loan Account from the Subaccounts and Guaranteed
Interest Account on the basis specified by the Policy Owner, or, if not
specified, on a proportional basis.
The Loan Account is a part of the Company's General Account. Amounts held
in the Loan Account are credited monthly with a fixed rate of interest equal to
an annualized rate of 5.0%. After the tenth Policy anniversary, it is expected
the annual interest rate that applies to the Loan Account will be .5% higher
than otherwise applicable. This increase is not guaranteed.
Loan repayments release funds from the Loan Account. Unless otherwise
requested by a Policy Owner, amounts released from the Loan Account as a result
of a loan repayment will be transferred into the Subaccounts and Guaranteed
Interest Account in accordance with the most recent allocation instructions for
Scheduled Premium Payments, subject to the limitation of maintaining no more
than $250,000 in the Guaranteed Interest Account. In addition, any interest
earned on the amount held in the Loan Account will be transferred to each of the
Subaccounts and Guaranteed Interest Account on the same basis.
While the amount to secure the Outstanding Debt is held in the Loan
Account, the Policy Owner forgoes the investment experience of the Subaccounts
and the current interest rate of the Guaranteed Interest Account on that amount.
Thus Outstanding Debt, whether or not repaid, will have a permanent effect on
the Policy's values and may have an effect on the amount and duration of the
death benefit. If not repaid, the Outstanding Debt reduced by any Unearned Loan
Interest will be deducted from the amount of death benefit paid upon the death
of the Insured, or the Surrender Value paid upon surrender or maturity.
Outstanding Debt may affect the length of time the Policy remains in force.
After the second Policy Anniversary, the Policy will lapse when Cash Value minus
Outstanding Debt is insufficient to cover the monthly deduction against the
Policy's Fund Value on any Monthly Anniversary Day and the minimum payment
required is not made during the Grace Period. Moreover, the Policy may enter the
Grace Period more quickly when Outstanding Debt exists, because the Outstanding
Debt is not available to cover the monthly deduction. In addition, the Guarantee
Period under the Guaranteed Minimum Death Benefit Rider may end if Outstanding
Debt exceeds the Cash Value of the Policy. Additional payments or repayment of a
portion of Outstanding Debt may be required to keep the Policy or Rider in
force. See "Grace Period and Lapse," page 29.
A loan will not be treated as a distribution from the Policy and will not
result in taxable income to the Policy Owner unless the Policy is a modified
endowment contract, in which case a loan will be treated as a distribution that
may give rise to taxable income. For more information on the tax treatment of
loans, see "Federal Income Tax Considerations," page 35.
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<PAGE> 33
FULL SURRENDER
A Policy Owner may fully surrender a Policy at any time during the life of
the Insured. The amount received in the event of a full surrender is the
Policy's Surrender Value, which is equal to its Fund Value less any applicable
Fund Charge and less any Outstanding Debt reduced by any Unearned Loan Interest.
A Policy Owner may surrender a Policy by sending a written request together
with the Policy to the Company's Home Office. The proceeds will be determined as
of the end of the Valuation Period during which the request for a surrender is
received. A Policy Owner may elect to have the proceeds paid in cash or applied
under a payment plan offered under the Policy. See "Payment Plan," page 45. For
information on the tax effects of a surrender of a Policy, see "Federal Income
Tax Considerations," page 35.
PARTIAL SURRENDER
A Partial Surrender allows the Policy Owner to obtain a portion of the
Surrender Value of the Policy without having to surrender the Policy in full. A
Partial Surrender may be made after the second Policy anniversary. There is
currently no limit on the number of Partial Surrenders allowed in a Policy year,
but the Company reserves the right to limit the number of Partial Surrenders to
12 per year.
A Partial Surrender must be for at least $500 (plus the applicable fee),
and the Policy's Surrender Value after the Partial Surrender must be at least
$500.
The Policy Owner may make a Partial Surrender by submitting a proper
written request to the Company's Home Office. As of the effective date of any
Partial Surrender, the Policy Owner's Fund Value, Cash Value, and Surrender
Value will be reduced by the amount surrendered (plus the applicable fee). The
amount of the Partial Surrender (plus the applicable fee) will be allocated
proportionately to the Policy Owner's Fund Value in the Subaccounts and the
Guaranteed Interest Account unless otherwise requested by the Policy Owner. If
the Insured dies after the request for a Partial Surrender is sent to the
Company and prior to the Partial Surrender being effected, the amount of the
Partial Surrender will be deducted from the death benefit proceeds, which will
be determined without taking into account the amount surrendered.
When a Partial Surrender is made on a Policy on which the Owner has
selected death benefit Option I, the Specified Amount under the Policy is
decreased by the lesser of (i) the amount of the Partial Surrender or (ii) if
the death benefit prior to the Partial Surrender is greater than the Specified
Amount, the amount, if any, by which the Specified Amount exceeds the difference
between the death benefit and the amount of the Partial Surrender. A Partial
Surrender will not change the Specified Amount of a Policy on which the Owner
has selected death benefit Option II. However, assuming that the death benefit
is not equal to Fund Value plus Fund Value times a death benefit percentage, the
Partial Surrender will reduce the death benefit by the amount of the Partial
Surrender. To the extent the death benefit is based upon the Fund Value plus
Fund Value times the death benefit percentage applicable to the Insured, a
Partial Surrender may cause the death benefit to decrease by an amount greater
than the amount of the Partial Surrender. See "Death Benefits under the Policy,"
page 19.
A fee for each Partial Surrender will be assessed. See "Charges and
Deductions -- Transaction and Other Charges", page 35. In addition, a portion of
the Fund Charge may be assessed if the Specified Amount is reduced as a result
of the Partial Surrender. See "Charges and Deductions -- Fund Charge," page 33.
For information on the tax treatment of Partial Surrenders, see "Federal
Income Tax Considerations," page 35.
PREFERRED PARTIAL SURRENDER
A Fund Charge which otherwise would have been imposed, will not be imposed
to the extent required to permit the Policy Owner to receive amounts up to 10%
of the Cash Value of the Policy each year (on the date the first request for a
Partial Surrender is received in a Policy Year). The Partial Surrender Fee will,
however, be charged. The Company reserves the right to limit the number of
partial surrenders available under the Preferred Partial Surrender to not more
than 12 per policy year.
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GRACE PERIOD AND LAPSE
In general, the Policy and all Riders attached to it will continue in force
as long as the Cash Value less Outstanding Debt of the Policy is sufficient to
pay all the deductions that are taken from Fund Value each month. The Policy
will lapse only when the Cash Value less Outstanding Debt is insufficient to
cover the current monthly deduction against the Policy's Fund Value on any
Monthly Anniversary Day, and a 61-day Grace Period expires without the Policy
Owner making a sufficient payment.
SPECIAL RULE FOR FIRST TWO POLICY YEARS
During the first two Policy years, if on each Monthly Anniversary Day the
sum of premiums paid, less the sum of Partial Surrenders (and its fees) and any
Outstanding Debt is greater than or equal to the Minimum Monthly Premiums times
the number of completed Policy months, the Policy and all attached Riders are
guaranteed not to lapse, regardless of the amount of Cash Value less Outstanding
Debt.
If the insufficiency occurs at any time after the second Policy
anniversary, or if the Minimum Monthly Premium test has not been met during the
first two Policy years, the Policy may be at risk of lapse depending on whether
or not a Guaranteed Death Benefit Rider is in effect, as explained below.
IF GUARANTEED DEATH BENEFIT RIDER IS NOT IN EFFECT
If an insufficiency occurs and a Guaranteed Death Benefit Rider is not in
effect, the Owner must pay during the Grace Period the amount required under the
Policy to avoid Lapse. In addition, payment of any loan interest accrued for the
Policy year but unpaid as of the Monthly Anniversary Day when insufficiency
occurs may be required prior to the end of the Grace Period.
The Company will not accept any payment if it would cause the Policy
Owner's total premium payments to exceed the maximum permissible premium for the
Policy's Specified Amount under the Internal Revenue Code. This may occur when
the Policy Owner has Outstanding Debt, in which case the Policy Owner could
repay a sufficient portion of the Outstanding Debt to avoid termination. In this
instance, the Policy Owner may wish to repay an additional portion of the
Outstanding Debt to avoid recurrence of the potential lapse. If premium payments
have not exceeded the maximum permissible premiums for the Policy's Specified
Amount, the Policy Owner may also wish to make larger or more frequent premium
payments to avoid recurrence of the potential lapse.
If the Cash Value of the Policy less Outstanding Debt is insufficient to
cover the entire monthly deduction on a Monthly Anniversary Day, the Company
will deduct the amount that is available. The Company will notify the Policy
Owner (and any assignee of record) of the payment required to keep the Policy in
force. The Policy Owner will then have a Grace Period of 61 days, measured from
the date the notice is sent, to make the required payment. During the first two
Policy years, the payment required is the amount of Minimum Monthly Premium not
paid plus not less than two succeeding Minimum Monthly Premiums (or the number
of Minimum Monthly Premiums remaining until the next Scheduled Premium due
date). After the Second Policy anniversary, the payment required is the amount
of the Monthly Deduction not paid plus not less than two succeeding Monthly
Deductions (or the number of Monthly Deductions remaining until the next
Scheduled Premium due date), grossed up by the amount of the Deductions from
Premiums (see "Charges and Deductions -- Deductions from Premiums", page 30).
The Policy will remain in force through the Grace Period. Failure to make the
required payment within the Grace Period will result in termination of coverage
under the Policy, and the Policy will lapse. If the required payment is made
during the Grace Period, any premium paid will be allocated among the
Subaccounts of the Variable Account and the Guaranteed Interest Account in
accordance with the Policy Owner's current Scheduled Premium Payment allocation
instructions. Any monthly deduction due will be charged to the Subaccounts and
the Guaranteed Interest Account on a proportionate basis. If the Insured dies
during the Grace Period, the death benefit proceeds will equal the amount of the
death benefit immediately prior to the commencement of the Grace Period, reduced
by any unpaid monthly deductions and any Outstanding Debt reduced by any
Unearned Loan Interest.
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IF GUARANTEED DEATH BENEFIT RIDER IS IN EFFECT
If a Guaranteed Death Benefit Rider is in effect and the tests for
continuation of the Guarantee Period have been met, the Specified Amount of the
Policy and most Rider coverages will not lapse during the Guarantee Period even
if the Cash Value less Outstanding Debt is not sufficient to cover all the
deductions from the Fund Value on any Monthly Anniversary Day. See "Guaranteed
Death Benefits", page 22.
While the Guaranteed Death Benefit Rider is in effect, the Fund Value of
the Policy may be reduced by Monthly Deductions, but not below zero. Any Monthly
Deductions during the Guarantee Period which would reduce the Fund Value below
zero will be waived.
The Guaranteed Death Benefit Rider will be terminated if the Policy does
not meet the monthly tests, as explained in "Guaranteed Death Benefits", page
22, and the payment required under the Riders is not made within the Grace
Period. If the Guaranteed Death Benefit Rider is terminated, the normal test for
lapse will resume.
The Guaranteed Death Benefit Rider is not available on Policies offered or
issued for delivery to residents of the Commonwealth of Massachusetts or the
State of Texas, and, therefore, Grace Period and Lapse will be treated as
described in the immediately preceding section entitled "If the Guaranteed Death
Benefit Is Not In Effect".
REINSTATEMENT
The Company will reinstate a lapsed Policy (but not a Policy which has been
surrendered for its Surrender Value) at any time within five years after the
Monthly Anniversary Day immediately before the start of the Grace Period but
before the Maturity Date, provided the Company receives the following: (i) a
written application from the Policy Owner; (ii) evidence of insurability
satisfactory to the Company; (iii) payment of all monthly deductions that were
due and unpaid during the Grace Period; (iv) payment of an amount at least
sufficient to keep the Policy in force for three months after the date of
reinstatement; and (v) payment of due and unpaid interest on Outstanding Debt to
the next succeeding Policy Anniversary Day.
When the Policy is reinstated, the Fund Value will be equal to the Fund
Value on the date of the lapse, subject to the following: (i) the Fund Charge
will be equal to the Fund Charge that would have existed had the Policy been in
force since the original Policy Date; (ii) the Fund Value will be reduced by the
decrease, if any, in the Fund Charge during the period which the Policy was not
in force; (iii) any Outstanding Debt on the date of lapse will also be
reinstated; and, (iv) no interest on amounts held in the Company's Loan Account
to secure Outstanding Debt will be paid or credited between lapse and
reinstatement. Reinstatement will be effective as of the Monthly Anniversary Day
on or preceding the date of approval by the Company, and Fund Value minus, if
applicable, Outstanding Debt will be allocated among the Subaccounts and the
Guaranteed Interest Account in accordance with the Policy Owner's most recent
Scheduled Premium Payment allocation instructions.
CHARGES AND DEDUCTIONS
DEDUCTIONS FROM PREMIUMS
Certain charges are deducted from each premium payment under a Policy prior
to allocation of the net premium to the Policy Owner's Fund Value. These charges
consists of the following items:
SALES CHARGE
The sales charge is equal to 4% of each premium paid during the first ten
Policy Years, 2% of each premium paid during Policy years 11 through 20, and
none thereafter.
The sales charge is deducted to compensate the Company for the cost of
distributing the Policies. The amount derived by the Company from the sales
charge is not expected to be sufficient to cover the sales and distribution
expenses in connection with the Policies. If surrendered within 15 years after
issuance, or within
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15 years following an increase in the Specified Amount, the Policy will also be
subject to a Fund Charge, which is described on page 33. To the extent that
sales and distribution expenses exceed sales charges and any amounts derived
from the sales Fund Charge, such expenses may be recovered from other charges,
including amounts derived indirectly from the charge for mortality and expense
risks and from mortality gains.
TAX CHARGES
All states levy taxes on life insurance premium payments. The amount of
these taxes vary from state to state, and may vary from jurisdiction to
jurisdiction within a state. The Company currently deducts an amount equal to
2.0% of each premium to pay applicable premium taxes. Currently, these taxes
range from 0% to 4%, and, therefore, the 2% deduction may be higher or lower
than the actual premium tax imposed by the applicable jurisdiction. The 2.0%
rate approximates the average tax rate the Company expects to pay on premiums.
The Company does not expect to make a profit from this charge.
A charge currently equal to 1.25% of each premium payment is deducted from
each premium to cover the estimated cost for the Federal income tax treatment of
deferred acquisition costs determined solely by the amount of life insurance
premiums received. The Company believes this charge for deferred acquisitions
costs is reasonable in relation to the Company's increased federal tax burden
under IRC Section 848 resulting from the receipt of premium payments. No charge
will be deducted where premiums received from a Policy Owner are not subject to
this tax.
The Company reserves the right to increase or decrease charge for taxes due
to any change in tax law or due to any change in the cost to the Company.
DAILY DEDUCTIONS FROM THE VARIABLE ACCOUNT
MORTALITY AND EXPENSE RISK CHARGE
Each day a charge is deducted for mortality and expense risks assumed by
the Company. During the first 10 Policy years, this charge is equal to .002055%
per day of the amount in the Subaccounts of the Variable Account, which is
equivalent to an annual rate of .75% of the portion of the Policy Fund Value
allocated to the Variable Account. Each month the Policy remains in force after
the tenth Policy Anniversary, the Fund Value allocated to the Subaccounts will
be credited with an amount which will effectively reduce the Mortality and
Expense Risk Charge. It is expected that this will be an amount equal to
0.00137% of the Subaccount amount. This is equivalent to 0.5% on an annualized
basis. This amount, which is not guaranteed, will be allocated among the
Subaccounts proportionately on each Monthly Anniversary Day following the tenth
Policy anniversary.
The mortality and expense risk charge is assessed to compensate the Company
for assuming mortality and expense risks under the Policies. The mortality risk
assumed is that Insureds, as a group, may live for a shorter period of time than
estimated and, therefore, the cost of insurance charges specified in the Policy
will be insufficient to meet the Company's actual claims. The expense risk the
Company assumes is that other expenses incurred in issuing and administering the
Policies and operating the Variable Account will be greater than the amount
estimated when setting the charges for these expenses. The Company will realize
a profit from this fee to the extent it is not needed to provide benefits and
pay expenses under the Policies. The Company may use this profit for other
purposes, including any distribution expenses not covered by the sales charge or
Sales Fund Charge.
This charge is not assessed against the amount of the Policy Fund Value
which is allocated to the Guaranteed Interest Account, nor to amounts in the
Loan Account.
31
<PAGE> 37
MONTHLY DEDUCTIONS FROM FUND VALUE
A charge called the monthly deduction is deducted from a Policy's Fund
Value in the Subaccounts and Guaranteed Interest Account beginning on the Policy
Date and on each Monthly Anniversary Day thereafter. The monthly deduction
consists of the following items:
COST OF INSURANCE
This monthly charge compensates the Company for the anticipated cost of
paying death benefits in excess of Fund Value to Beneficiaries of Insureds who
die. The amount of the charge is equal to a current cost of insurance rate
multiplied by the net amount at risk under a Policy at the beginning of the
Policy Month. The net amount at risk for these purposes is equal to the amount
of death benefit payable at the beginning of the Policy Month less the Fund
Value at the beginning of the Policy Month.
The Policy contains guaranteed cost of insurance rates that may not be
increased. The guaranteed rates are based on the 1980 Commissioners Standard
Ordinary Smoker and Nonsmoker Mortality Tables (for issue ages under 18, no
smoker/nonsmoker adjustment is made and where unisex cost of insurance rates
apply, the 1980 Commissioners Ordinary Mortality Table B). These rates are based
on the Age and underwriting class of the Insured. They are also based on the
gender of the Insured, except that unisex rates are used where appropriate under
applicable law, including in the states of Montana and Massachusetts and in
Policies purchased by employers and employee organizations in connection with
employment related insurance or benefit programs. As of the date of this
prospectus, the Company charges "current rates" that are lower (i.e., less
expensive) than the guaranteed rates, and the Company may also change current
rates in the future. Like the guaranteed rates, the current rates also vary with
the age, gender, smoking status, and underwriting class of the Insured. In
addition, they also vary with the policy duration. The cost of insurance rate
generally increases with the Age of the Insured.
If there have been increases in the Specified Amount, then for purposes of
calculating the cost of insurance charge, the Fund Value will first be applied
to the initial Specified Amount. If the Fund Value exceeds the initial Specified
Amount, the excess will then be applied to any increase in Specified Amount in
the order of the increases. If the death benefit equals the Fund Value
multiplied by the applicable death benefit percentage, any increase in Fund
Value will cause an automatic increase in the death benefit. The underwriting
class and duration for such increase will be the same as that used for the most
recent increase in Specified Amount (that has not been eliminated through a
subsequent decrease in Specified Amount).
ADMINISTRATIVE CHARGE
An administrative charge is deducted monthly from the Fund Value. The
amount of this charge varies by Issue Age of the Insured, Policy duration and
with the size of a Policy's Specified Amount.
<TABLE>
<CAPTION>
EACH POLICY MONTH
FIRST 12 POLICY MONTHS THEREAFTER
---------------------- ---------------------
<S> <C> <C>
Specified Amount:
Less than $250,000......................... $31.50* $6.50
$250,000 to $499,999....................... 28.50* 3.50
$500,000 or more........................... 25.00* None
</TABLE>
- ---------------
* Reduced by $5.00 for issue ages 0 through 17.
For purposes of this charge, if an increase or decrease in Specified Amount
causes a Policy to change bands, the monthly administrative charges on the
Monthly Anniversary Day of the change will be adjusted to reflect the new
Specified Amount. The administrative charge is assessed to reimburse the Company
for the expenses associated with administration and maintenance of the Policies.
The administrative charge is guaranteed never to exceed these amounts. The
Company does not expect to profit from this charge.
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<PAGE> 38
GUARANTEED DEATH BENEFIT CHARGE
If the Guaranteed Death Benefit Rider has been elected, a charge of $0.01
per thousand dollars of Policy Specified Amount and certain Rider amounts is
deducted each month during the Guarantee Period. This charge is guaranteed never
to exceed this amount.
The Guaranteed Death Benefit Rider is not available on Policies offered or
issued for delivery to residents of the Commonwealth of Massachusetts or the
State of Texas.
OTHER OPTIONAL INSURANCE BENEFITS CHARGES
The monthly deduction will include charges for any other optional insurance
benefits added to the Policy by Rider. See "Other Optional Insurance Benefits,"
page 23.
FUND CHARGE
There will be a difference between the Fund Value of the Policy and its
Cash Value for at least the first fourteen Policy years. This difference is the
Fund Charge, a contingent deferred load. It is a contingent load because it is
assessed only if the Policy is surrendered, if the Policy lapses, or if the
Specified Amount of the Policy is decreased. It is a deferred load because it is
not deducted from the premiums paid. The Fund Charge consists of two charges: an
Administrative Fund Charge and a Sales Fund Charge. The Company will assess the
Fund Charge against the Fund Value upon surrender, lapse or reduction in
Specified Amount within fourteen years after its issuance, or within fourteen
years following an increase in Specified Amount.
ADMINISTRATIVE FUND CHARGE
The Administrative Fund Charge is equal to an amount per thousand dollars
of Specified Amount as follows:
<TABLE>
<CAPTION>
ADMINISTRATIVE
ISSUE AGE FUND CHARGE
------------------------------------------------------------------------ --------------
<S> <C>
0-25.................................................................... $ 2.50
26...................................................................... 3.00
27...................................................................... 3.50
28...................................................................... 4.00
29...................................................................... 4.50
30 or higher............................................................ 5.00
</TABLE>
The amount of the charge remains level for five Policy years. After the fifth
Policy Anniversary, the charge decreases by 10% per year until it reaches zero
at the end of the 14th Policy year. An additional Administrative Fund Charge is
created each time a new coverage segment of Specified Amount is added. The
Administrative Fund Charge related to the increased Specified Amount decreases
over the 14 years following the date of the increase on a scale identical to
that of the original Administrative Fund Charge.
For example, if a Policy issued at Age 40 with an initial Specified Amount
of $100,000 is surrendered in the third Policy Year, the Administrative Fund
Charge would be $500 ($100 times $5.00). If that Policy is increased in the
fourth Policy year to $150,000 and is subsequently surrendered in the seventh
policy year, the total Administrative Fund Charge would be $650 ($100 times
$5.00 times 80%, plus $50 times $5.00.)
The Administrative Fund Charge is designed to cover the administrative
expenses associated with underwriting and issuing a Policy, including the costs
of processing applications, conducting medical examinations, determining
insurability and the Insured's underwriting class, and establishing policy
records. The Company does not expect to profit from the Administrative Fund
Charge.
33
<PAGE> 39
SALES FUND CHARGE
To determine the Sales Fund Charge, a "Target Premium" is used. The Target
Premium is not based on the Minimum Annual Premiums or the Scheduled Premium
Payments. The maximum Sales Fund Charge for the initial Specified Amount of the
Policy will be equal to the following percentage of premiums paid up to one
Target Premium. The maximum Sales Fund Charge will not vary based on the amount
of premiums paid or the timing of the premium payments. The actual Sales Fund
Charge for a Policy is a percentage of the premiums paid on the Policy during
the first five Policy years, up to the maximum. This percentage varies by the
Age of the Insured on the Policy Date as follows:
<TABLE>
<CAPTION>
PERCENTAGE OF
AGE PREMIUMS PAID
----------------------------------------------------------------------- -------------
<S> <C>
0-17................................................................... 50%
18-65.................................................................. 75
66..................................................................... 70
67..................................................................... 65
68..................................................................... 60
69..................................................................... 55
70 or higher........................................................... 50
</TABLE>
Therefore, the Sales Fund Charge can increase as premiums are paid during the
five year period. Starting on the fifth Policy anniversary, the charge decreases
from its maximum by 10% per year until it reaches zero at the end of the 14th
year.
During the first two Policy years, the Sales Fund Charge will be further
limited.
As an example of the Sales Fund Charge calculation, if a Male Insured Age
25 purchases a Policy with a Specified Amount of $100,000, the Target Premium,
based upon the assumptions described above, would be $580.00 (Preferred,
nonsmoker, Death Benefit Option I). The maximum Sales Fund Charge during the
first five Policy Years would be 75% of this amount, or $435.00.
The purpose of the Sales Fund Charge is to reimburse the Company for some
of the expenses of distributing the Policies.
EFFECT OF CHANGES IN SPECIFIED AMOUNT ON THE FUND CHARGE
The Fund Charge will increase when a new coverage segment of Specified
Amount is created due to a requested increase in coverage. The Fund Charge
related to the increase will be calculated in the same manner as the Fund Charge
for the original Specified Amount, and will be reduced over the 15 year period
following the increase. For purposes of calculating the sales Fund Charge,
premiums paid after the increase will be allocated to Specified Amount segments
in the same proportion that the guideline annual premium as defined by the
federal securities laws for each segment bear to the sum of the guideline annual
premiums for all coverage segments. The new Fund Charge for the Policy will
equal the remaining portion of the Fund Charge for the original Specified
Amount, plus the Fund Charge related to the increase.
A portion of the Fund Charge will be deducted from the Fund Value whenever
the Specified Amount of the Policy is reduced. This may result from a requested
decrease, a change of death benefit option from Option II to Option I, or a
Partial Surrender. The Fund Charge, as well as the transaction charge assessed
for the Partial Surrender, if applicable, will be deducted from the Subaccounts
and the Guaranteed Interest Account on the same basis that the Partial Surrender
is allocated. For purposes of this calculation, if any Subaccount or the
Guaranteed Interest Account is insufficient to provide for its share of the
deduction, the entire deduction will be pro-rated among the Subaccounts from
which the Partial Surrender is deducted in relation to their Fund Values. The
remaining Fund Charge which applies to the Policy will be reduced
proportionately for the amount of the Fund Charge which was assessed against the
Fund Value.
34
<PAGE> 40
CORPORATE PURCHASERS
The Policy is available for individuals and for corporations and other
institutions. For corporate or other group or sponsored arrangements purchasing
one or more Policies, the Company may reduce the amount of the Sales Fund
Charge, Administrative Fund Charge, or other charges where the expenses
associated with the sale of the Policy or Policies or the underwriting or other
administrative costs associated with the Policy or Policies are reduced. Sales,
underwriting or other administrative expenses may be reduced for reasons such as
expected economies resulting from a corporate purchase or a group or sponsored
arrangement, from the amount of the initial premium payment or payments, or the
amount of projected premium payments.
TRANSACTION AND OTHER CHARGES
A Partial Surrender fee will be deducted from the Fund Value for each
Partial Surrender Transaction. The fee will equal the lesser of $25 and 2% of
the Partial Surrender amount. This charge is guaranteed not to exceed these
amounts.
The Company currently does not charge for transfers of Fund Value between
the Subaccounts. The Company does, however, reserve the right to assess a $25
charge on transfers which exceed four in any Policy year. For Policies issued
for delivery to residents of the Commonwealth of Pennsylvania, the Company
guarantees that no transfer charge will be imposed on transfers made within one
year from the date the Policy is issued.
The Company may charge the Subaccounts for federal income taxes incurred by
the Company that are attributable to the Variable Account and its Subaccounts.
No such charge is currently assessed. See "Charge for Company Income Taxes,"
page 39.
The Company will bear the direct operating expenses of the Variable
Account. The Subaccounts purchase shares of the corresponding Portfolio of the
underlying Fund. The Fund and each of its Portfolios incur certain charges
including the investment advisory fee and certain operating expenses. The Funds
are governed by their Boards. The Fund's expenses are not fixed or specified
under the terms of the Policy. The advisory fees and other expenses are more
fully described in the prospectuses of the Funds.
GUARANTEE OF CERTAIN CHARGES
The Company guarantees that certain charges will not increase. This
includes the charge for mortality and expense risks, the administrative charge,
the sales charge, the guaranteed cost of insurance rates, and the Fund Charge.
Any changes in the current cost of insurance charges or charges for
optional insurance benefits will be made by class of Insured and will be based
on changes in future expectations with respect to investment earnings,
mortality, length of time policies will remain in effect, expenses, and taxes.
In no event will they exceed the guaranteed rates defined in the Policy.
OTHER INFORMATION
FEDERAL INCOME TAX CONSIDERATIONS
The following discussion provides a general description of the federal
income tax considerations relating to the Policy. This discussion is based upon
the Company's understanding of the present federal income tax laws as they are
currently interpreted by the Internal Revenue Service ("IRS"). This discussion
is not intended as tax advice. Because of the inherent complexity of such laws
and the fact that tax results will vary according to the particular
circumstances of the individual involved, tax advice may be needed by a person
contemplating the purchase of the Policy. It should, therefore, be understood
that these comments concerning federal income tax consequences are not an
exhaustive discussion of all tax questions that might arise under the Policy and
that special rules which are not discussed herein may apply in certain
situations. Moreover, no representation is made as to the likelihood of
continuation of federal income tax or estate or gift tax laws or of
35
<PAGE> 41
the current interpretations by the IRS or the courts. Future legislation may
adversely affect the tax treatment of life insurance policies or other tax rules
described in this discussion or that relate directly or indirectly to life
insurance policies. Finally, these comments do not take into account any state
or local income tax considerations which may be involved in the purchase of the
Policy.
DEFINITION OF LIFE INSURANCE
Section 7702 of the Internal Revenue Code (the "Code") provides that if one
of two alternate tests are met, a policy will be treated as a life insurance
policy for federal tax purposes. These tests are referred to as the "Cash Value
Accumulation Test" and the "Guideline Premium/Cash Value Corridor Test".
The Policy described in this Prospectus is tested under the Guideline
Premium/Cash Value Corridor Test. This test provides for, among other things,
(i) a maximum allowable premium per thousand dollars of death benefit, known as
the "guideline annual premium", and (ii) a minimum ongoing "corridor" of death
benefit in relation to the Fund Value of the Policy, known as the "death benefit
percentage." See Appendix B, for a table of the Guideline Premium/Cash Value
Corridor Test factors.
The Company believes that the Policy meets this statutory definition of
life insurance and hence will receive federal income tax treatment consistent
with that of fixed life insurance. Thus, the death benefit should be excludable
from the gross income of the Beneficiary (whether the Beneficiary is a
corporation, individual or other entity) under Section 101(a)(1) of the Code for
purposes of the regular federal income tax and the Policy Owner generally should
not be deemed to be in constructive receipt of the cash values under the Policy
until a full surrender thereof, maturity of the Policy, Partial Surrender, or
Preferred Partial Surrender. In addition, certain Policy loans may be taxable in
the case of Policies that are modified endowment contracts. Prospective Policy
Owners that intend to use Policies to fund deferred compensation arrangements
for their employees are urged to consult their tax advisors with respect to the
tax consequences of such arrangements. Prospective corporate Owners should
consult their tax advisors about the treatment of life insurance in their
particular circumstances for purposes of the alternative minimum tax applicable
to corporations.
DIVERSIFICATION REQUIREMENTS
To comply with regulations under Section 817(h) of the Code, each Portfolio
is required to diversify its investments. Generally, a Portfolio is required to
diversify its investments so that on the last day of each quarter of a calendar
year, no more than 55% of the value of its assets is represented by any one
investment, no more than 70% is represented by any two investments, no more than
80% is represented by any three investments, and no more than 90% is represented
by any four investments. Securities of a single issuer generally are treated for
purposes of Section 817(h) as a single investment. However, for this purpose,
each U.S. Government agency or instrumentality is treated as a separate issuer,
and any security issued, guaranteed, or insured (to the extent so guaranteed or
insured) by the U.S. or by an agency or instrumentality of the U.S. is treated
as a security issued by the U.S. Government or its agency or instrumentality,
whichever is applicable.
While there should be no question that, for federal income tax purposes,
the Portfolio shares underlying the Policies are owned by the Company and not by
a Policy Owner or any Beneficiary, no representation is or can be made regarding
the likelihood of the continuation of current interpretations by the IRS.
TAX TREATMENT OF POLICIES
The Technical and Miscellaneous Revenue Act of 1988 established a new class
of life insurance contracts referred to as modified endowment contracts. With
the enactment of this legislation, the Policies will be treated for tax purposes
in one of two ways. Policies that are not classified as modified endowment
contracts will be taxed as conventional life insurance contracts, as described
below. Taxation of pre-death distributions from Policies that are classified as
modified endowment contracts is somewhat different, as described below.
A life insurance contract becomes a "modified endowment contract" if, at
any time during the first seven contract years, the sum of actual premiums paid
exceeds the sum of the "seven-pay premium." Generally, the
36
<PAGE> 42
"seven-pay premium" is the level annual premium, such that if paid for each of
the first seven years, will fully pay for all future death and endowment
benefits under a contract. For example, if the "seven-pay premiums" were $1,000,
the maximum premiums that could be paid during the first seven years to avoid
"modified endowment" treatment would be $1,000 in the first year; $2,000 through
the first two years and $3,000 through the first three years, etc. Under this
test, a Policy may or may not be a modified endowment contract, depending on the
amount of premiums paid during each of the Policy's first seven contract years.
Changes in benefits may require retesting to determine if the Policy is to be
classified as a modified endowment contract.
CONVENTIONAL LIFE INSURANCE POLICIES
If a Policy is not a modified endowment contract, upon full surrender or
maturity of a Policy for its Surrender Value, the excess, if any, of the
Surrender Value plus any outstanding Policy Debt over the cost basis under a
Policy will be treated as ordinary income for federal income tax purposes. A
Policy's cost basis will usually equal the premiums paid less any premiums
previously recovered through Partial Surrenders or Preferred Partial Surrenders.
Under Section 7702 of the Code, special rules apply to determine whether part or
all of the cash received through Partial Surrenders in the first 15 Policy years
is paid out of the income of the Policy and therefore subject to income tax.
Cash distributed to a Policy Owner on Partial Surrenders occurring more than 15
years after the Policy Date will be taxable as ordinary income to the Policy
Owner to the extent that it exceeds the cost basis under a Policy.
The Company also believes that loans received under Policies that are not
modified endowment contracts will be treated as indebtedness of the Owner, and
that no part of any loan under the Policy will constitute income to the Owner
unless the Policy is surrendered or upon maturity of the Policy. Interest paid
(or accrued by an accrual basis taxpayer) on a loan under a Policy that is not a
modified endowment contract may be deductible, subject to several limitations,
depending on the use to which the proceeds are put and the tax rules applicable
to the Policy Owner. If, for example, the loan proceeds are used by an
individual for business or investment purposes, all or part of the interest
expense may be deductible. Generally, if the Policy Loan is used for personal
purposes by an individual, the interest expense is not deductible. The
deductibility of loan interest (whether incurred under a Policy Loan or on other
indebtedness) also may be subject to other limitations. For example, where the
interest is paid (or accrued by an accrued basis taxpayer) on a loan under a
Policy covering the life of an officer, employee, or person financially
interested in the trade or business of the Policy Owners, the interest may be
deductible to the extent that the interest is attributable to the first $50,000
of the Outstanding Debt. Other tax law provisions may limit the deduction of
interest payable on loan proceeds that are used to purchase or carry certain
life insurance policies.
MODIFIED ENDOWMENT CONTRACTS
Pre-death distributions from modified endowment contracts may give rise to
taxable income. Upon full surrender or maturity of the Policy, the Policy Owner
would recognize ordinary income for federal income tax purposes equal to the
amount by which the Surrender Value plus Outstanding Debt exceeds the investment
in the Policy (usually the premiums paid plus certain pre-death distributions
that were taxable less any premiums previously recovered that were excludable
from gross income). Upon Partial Surrenders, Preferred Partial Surrenders, and
Policy loans, the Policy Owner would recognize ordinary income to the extent
allocable to income (which includes all previously non-taxed gains) on the
Policy. The amount allocated to income is the amount by which the Fund Value of
the Policy exceeds investment in the Policy immediately before the distribution.
Under a tax law provision, if two or more policies which are classified as
modified endowment contracts are purchased from any one insurance company,
including the Company, during any calendar year, all such policies will be
aggregated for purposes of determining the portion of the pre-death
distributions allocable to income on the policies and the portion allocable to
investment in the policies.
Amounts received under a modified endowment contract that are included in
gross income are subject to an additional tax equal to 10% of the amount
included in gross income, unless an exception applies. The 10% additional tax
does not apply to any amount received: (i) when the taxpayer is at least 59 1/2
years old; (ii) which is attributable to the taxpayer becoming disabled; or
(iii) which is part of a series of substantially
37
<PAGE> 43
equal periodic payments (not less frequently than annually) made for the life
(or life expectancy) of the taxpayer or the joint lives (or joint life
expectancies) of the taxpayer and his or her beneficiary.
If a Policy was not originally a modified endowment contract but becomes
one, under Treasury Department regulations which are yet to be prescribed,
pre-death distributions received in anticipation of a failure of a Policy to
meet the seven-pay premium test are to be treated as pre-death distributions
from a modified endowment contract (and, therefore, are to be taxable as
described above) even though, at the time of the distribution(s), the Policy was
not yet a modified endowment contract. For this purpose, pursuant to the Code,
any distribution made within two years before the Policy is classified as a
modified endowment contract shall be treated as being made in anticipation of
the Policy's failing to meet the seven-pay premium test.
It is unclear whether interest paid (or accrued by an accrual basis
taxpayer) on Outstanding Debt with respect to a modified endowment contract
constitutes interest for federal income tax purposes. If it does constitute
interest, it may be deductible, subject to several limitations, depending on the
use to which the proceeds are put and the tax rules applicable to the Policy
Owner. If, for example, the loan proceeds are used by an individual for business
or investment purposes, all or part of the interest expense may be deductible.
Generally, if the Policy loan is used for personal purposes by an individual,
the interest expense is not deductible. The deductibility of loan interest
(whether incurred under a Policy Loan or on other indebtedness) also may be
subject to other limitations. For example, where the interest is paid (or
accrued by an accrual basis taxpayer) on a loan under a Policy covering the life
of an officer, employee, or person financially interested in the trade or
business of the Policy Owners, the interest may be deductible to the extent that
the interest is attributable to the first $50,000 of the Outstanding Debt. Other
tax law provisions may limit the deduction of interest payable on loan proceeds
that are used to purchase or carry certain life insurance policies.
REASONABLENESS REQUIREMENT FOR CHARGES
Another provision of the tax law deals with allowable charges for mortality
costs and other expenses that are used in making calculations to determine
whether a contract qualifies as life insurance for federal income tax purposes.
For life insurance policies entered into on or after October 21, 1988, these
calculations must be based upon reasonable mortality charges and other charges
reasonably expected to be actually paid. The Treasury Department is expected to
promulgate regulations governing reasonableness standards for mortality charges.
The Company believes that the mortality costs and other expenses used in making
calculations to determine whether the Policy qualifies as life insurance meet
the current requirements. It is possible that future regulations will contain
standards that would require the Company to modify its mortality charges used
for the purposes of the calculations in order to retain qualification of the
Policy as life insurance for federal income tax purposes, and the Company
reserves the right to make any such modifications.
PENSION AND PROFIT-SHARING PLANS
If the Policies described in this Prospectus are purchased by a fund which
forms part of a pension or profit-sharing plan qualified under Sections 401(a)
or 403 of the Code for the benefit of participants covered under the plan, the
federal income tax treatment of such policies will be somewhat different from
that described above.
If purchased as part of a pension or profit sharing plan, the current cost
of insurance for the net amount at risk is treated as a "current fringe benefit"
and is required to be included annually in the plan participant's gross income.
This cost (generally referred to as the "P.S. 58" cost) is reported to the
participant annually. If the plan participant dies while covered by the plan and
the policy proceeds are paid to the participant's beneficiary, then the excess
of the death benefit over the Policy Fund Value will not be subject to Federal
income tax. However, the Policy Fund Value will generally be taxable to the
extent it exceeds the sum of $5,000 plus the participant's cost basis in the
Policy. The participant's cost basis will generally include the costs of
insurance previously reported as income to the participant. Special rules may
apply if the participant had borrowed from his Policy or was an owner-employee
under the plan.
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<PAGE> 44
There are limits on the amounts of life insurance that may be purchased on
behalf of a participant in a pension or profit sharing plan. Complex rules, in
addition to those discussed above, apply whenever life insurance is purchased by
a tax qualified plan.
OTHER EMPLOYEE BENEFIT PROGRAMS
Complex rules may apply when a Policy is held by an employer or a trust, or
acquired by an employee, in connection with the provision of employee benefits.
These Policy Owners also must consider whether the Policy was applied for by or
issued to a person having an insurable interest under applicable state law, as
the lack of insurable interest may, among other things, affect the qualification
of the Policy as life insurance for federal income tax purposes and the right of
the beneficiary to death benefits. Employers and employer-created trusts may be
subject to reporting, disclosure, and fiduciary obligations under the Employee
Retirement Income Security Act of 1974 (ERISA). The Policy Owners legal advisor
should be consulted to address these issues.
OTHER
Federal estate and gift and state and local estate, inheritance, and other
tax consequences of ownership or receipt of Policy proceeds depend on the
jurisdiction and the circumstances of each Owner or Beneficiary.
For complete information on federal, state, local and other tax
considerations, a qualified tax advisor should be consulted.
THE COMPANY DOES NOT MAKE ANY GUARANTEE REGARDING
THE TAX STATUS OF ANY POLICY.
CHARGE FOR COMPANY INCOME TAXES
For federal income tax purposes, variable life insurance generally is
treated in a manner consistent with fixed life insurance. The Company will
review the question of a charge to the Variable Account for the Company's
federal income taxes periodically. A charge may be made for any federal income
taxes incurred by the Company that are attributable to the Variable Account.
This might become necessary if the tax treatment of the Company is ultimately
determined to be other than what the Company currently believes it to be, if
there are changes made in the federal income tax treatment of variable life
insurance at the insurance company level, or if there is a change in the
Company's tax status.
Under current laws, the Company may incur state and local taxes (in
addition to premium taxes imposed by the states) in several states. At present,
these taxes are not significant. If there is a material change in applicable
state or local tax laws or in the cost to the Company, the Company reserves the
right to charge the Account for such taxes, if any, attributable to the Account.
VOTING OF FUND SHARES
In accordance with its view of present applicable law, the Company will
exercise voting rights attributable to the shares of each portfolio of the Funds
held in the Subaccounts at any regular and special meetings of the shareholders
of the Funds on matters requiring shareholder voting under the Investment
Company Act of 1940. The Company will exercise these voting rights based on
instructions received from persons having the voting interest in corresponding
Subaccounts of the Variable Account. However, if the Investment Company Act of
1940 or any regulations thereunder should be amended, or if the present
interpretation thereof should change, and as a result the Company determines
that it is permitted to vote the shares of the Funds in its own right, it may
elect to do so.
The person having the voting interest under a Policy is the Policy Owner.
Unless otherwise required by applicable law, the number of votes as to which a
Policy Owner will have the right to instruct for any Portfolio will be
determined by dividing a Policy Owner's Fund Value in the Subaccount which
corresponds to the Portfolio by $100. Fractional votes will be counted. The
number of votes as to which a Policy Owner will have
39
<PAGE> 45
the right to instruct will be determined as of the date determined by the
Company, but in no event shall such date be more than 90 days prior to the date
established by the respective Fund for determining shareholders eligible to vote
at the meeting of the respective Fund. If required by the Securities and
Exchange Commission, the Company reserves the right to determine in a different
fashion the voting rights attributable to the shares of the respective Fund
based upon the instructions received from Policy Owners. Voting instructions may
be cast in person or by proxy.
Voting rights attributable to the Policy Owner's Fund Value held in each
Subaccount for which no timely voting instructions are received will be voted by
the Company in the same proportion as the voting instructions which are received
in a timely manner for all Policies participating in that Subaccount. The
Company will also exercise the voting rights from assets in each Subaccount
which are not otherwise attributable to Policy Owners, if any, in the same
proportion as the voting instructions which are received in a timely manner for
all Policies participating in that Subaccount and generally will exercise voting
rights attributable to shares of Portfolios of the Funds held in its General
Account, if any, in the same proportion as votes cast with respect to shares of
Portfolios of the Funds held by the Variable Account and other separate accounts
of the Company, in the aggregate.
DISREGARD OF VOTING INSTRUCTIONS
The Company may, when required by state insurance regulatory authorities,
disregard voting instructions if the instructions require that voting rights be
exercised so as to cause a change in the subclassification or investment
objective of a Portfolio or to approve or disapprove an investment advisory
contract. In addition, the Company itself may disregard voting instructions of
changes initiated by Policy Owners in the investment policy or the investment
adviser (or portfolio manager) of a Portfolio, provided that the Company's
disapproval of the change is reasonable and is based on a good faith
determination that the change would be contrary to state law or otherwise
inappropriate, considering the Portfolio's objectives and purpose, and
considering the effect the change would have on the Company. In the event the
Company does disregard voting instructions, a summary of that action and the
reasons for such action will be included in the next report to Policy Owners.
REPORT TO POLICY OWNERS
A statement will be sent at least annually to each Policy Owner setting
forth a summary of the transactions which occurred since the last statement and
indicating the death benefit, Specified Amount, Fund Value, Surrender Value, and
any Outstanding Debt. In addition, the statement will indicate the allocation of
Fund Value among the Guaranteed Interest Account, the Loan Account and the
Subaccounts and any other information required by law. Confirmations will be
sent out upon premium payments, transfers, loans, loan repayments, withdrawals,
and surrenders.
Each Policy Owner will also receive an annual and a semiannual report
containing financial statements for the Variable Account and the Funds, the
latter of which will include a list of the portfolio securities of the Funds, as
required by the Investment Company Act of 1940, and/or such other reports as may
be required by federal securities laws.
SUBSTITUTION OF INVESTMENTS AND RIGHT TO CHANGE OPERATIONS
The Company reserves the right, subject to compliance with the law as then
in effect, to make additions to, deletions from, or substitutions for the
securities that are held by the Variable Account or any of its other separate
accounts or that the Variable Account or any of its other separate accounts may
purchase. If shares of any or all of the Portfolios of the Funds should no
longer be available for investment, or if, in the judgment of the Company's
management, further investment in shares of any or all Portfolios of the Funds
should become inappropriate in view of the purposes of the Policies, the Company
may substitute shares of another Portfolio of the Funds or of a different fund
for shares already purchased, or to be purchased in the future under the
Policies.
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<PAGE> 46
Where required, the Company will not substitute any shares attributable to
a Policy Owner's interest in a Variable Account without notice, Policy Owner
approval, or prior approval of the Securities and Exchange Commission and
without following the filing or other procedures established by applicable state
insurance regulators. Applicable state insurance regulators include the
Commissioner of Insurance of the State of Arizona.
The Company also reserves the right to establish additional Subaccounts of
the Variable Account, each of which would invest in a new portfolio of the
Funds, or in shares of another investment company, a portfolio thereof, or
another suitable investment vehicle, with a specified investment objective. New
Subaccounts may be established when, in the sole discretion of the Company,
marketing needs or investment conditions warrant, and any new Subaccounts will
be made available to existing Policy Owners on a basis to be determined by the
Company. The Company may also eliminate one or more Subaccounts if, in its sole
discretion, marketing, tax, or investment conditions so warrant.
In the event of any such substitution or change, the Company may, by
appropriate endorsement, make such changes in this and other policies as may be
necessary or appropriate to reflect such substitution or change. If deemed by
the Company to be in the best interests of persons having voting rights under
the Policies, the Variable Account may be operated as a management investment
company under the Investment Company Act of 1940 or any other form permitted by
law, it may be deregistered under that Act in the event such registration is no
longer required, or it may be combined with other separate accounts of the
Company or an affiliate thereof. Subject to compliance with applicable law, the
Company also may combine one or more Subaccounts and may establish a committee,
board, or other group to manage one or more aspects of the operation of the
Variable Account.
CHANGES TO COMPLY WITH LAW
The Company reserves the right to make any change without consent of Policy
Owners to the provisions of the Policy to comply with, or give Policy Owners the
benefit of, any Federal or State statute, rule, or regulation, including but not
limited to requirements for life insurance contracts under the Internal Revenue
Code, under regulations of the United States Treasury Department or any state.
PERFORMANCE INFORMATION
Performance information for the Subaccounts of the Variable Account may
appear in advertisements, sales literature, or reports to Policy Owners or
prospective purchasers. Performance information in advertisements or sales
literature may be expressed in any fashion permitted under applicable law, which
may include presentation of a change in a Policy Owner's Fund Value attributable
to the performance of one or more Subaccounts, or as a change in Policy Owner's
death benefit. Performance quotations may be expressed as a change in a Policy
Owner's Fund Value over time or in terms of the average annual compounded rate
of return on the Policy Owner's Fund Value, based upon a hypothetical Policy in
which premiums have been allocated to a particular Variable Account over certain
periods of time that will include one, five and ten years, or from the
commencement of operation of the Variable Account if less than one, five, or ten
years. Any such quotation may reflect the deduction of all applicable charges to
the Policy including premium load, the cost of insurance, the administrative
charge, and the mortality and expense risk charge. The quotation may also
reflect the deduction of the Fund Charge, if applicable, by assuming a surrender
at the end of the particular period, although other quotations may
simultaneously be given that do not assume a surrender and do not take into
account deduction of the Fund Charge.
Performance information for the Variable Account may be compared, in
advertisements, sales literature, and reports to Policy Owners to: (i) other
variable life separate accounts or investment products tracked by research
firms, ratings services, companies, publications, or persons who rank separate
accounts or investment products on overall performance or other criteria; and
(ii) the Consumer Price Index (measure for inflation) to assess the real rate of
return from the purchase of a Policy. Reports and promotional literature may
also contain the Company's rating or a rating of the Company's claim paying
ability as determined by firms that analyze and rate insurance companies and by
nationally recognized statistical rating organizations.
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<PAGE> 47
Performance information for any Subaccount of the Variable Account reflects
only the performance of a hypothetical Policy whose Fund Value is allocated to
the Variable Account during a particular time period on which the calculations
are based. Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of the
Portfolios of the Funds in which the Variable Account invests, and the market
conditions during the given period of time, and should not be considered as a
representation of what may be achieved in the future.
THE GUARANTEED INTEREST ACCOUNT
Policy Owners may allocate all or a portion of their net premiums and
transfer Fund Value to the Guaranteed Interest Account of the Company. Amounts
allocated to the Guaranteed Interest Account become part of the "General
Account" of the Company, which supports insurance and annuity obligations.
Descriptions of the Guaranteed Interest Account are included in this Prospectus
for the convenience of the Purchaser. The Guaranteed Interest Account and the
General Account of the Company have not been registered under the Securities Act
of 1933 and the Investment Company Act of 1940. Accordingly, neither the
Guaranteed Interest Account nor any interest therein is generally subject to the
provisions of these Acts and, as a result, the staff of the Securities and
Exchange Commission has not reviewed the disclosure in this prospectus relating
to the Guaranteed Interest Account. Disclosures regarding the Guaranteed
Interest Account may, however, be subject to certain generally applicable
provisions of the federal securities laws relating to the accuracy and
completeness of statements made in the prospectus. For more details regarding
the Guaranteed Interest Account, see the Policy.
GENERAL DESCRIPTION
Amounts allocated to the Guaranteed Interest Account become part of the
General Account of Company which consists of all assets owned by the Company
other than those in the Variable Account and other separate accounts of the
Company. Subject to applicable law, the Company has sole discretion over the
investment of the assets of its General Account.
The Policy Owner may elect to allocate net premiums to the Guaranteed
Interest Account, the Variable Account, or both. The Policy Owner may also
transfer Fund Value from the Subaccounts of the Variable Account to the
Guaranteed Interest Account, or from the Guaranteed Interest Account to the
Subaccounts, subject to the limitations described below. Company guarantees that
the Fund Value in the Guaranteed Interest Account will be credited with a
minimum interest rate of 0.013368% daily, compounded daily, for a minimum
effective annual rate of 5.0%. Such interest will be paid regardless of the
actual investment experience of the Guaranteed Interest Account. In addition,
Company may in its sole discretion declare current interest in excess of the
5.0% annual rate, which will be guaranteed for approximately one year. (The
portion of a Policy Owner's Fund Value that has been used to secure Outstanding
Debt will be credited with a guaranteed interest rate of 0.013368% daily,
compounded daily, for a minimum effective annual rate of 5.0%.) After the tenth
Policy anniversary, it is expected the annual interest rates that apply to the
Fund Value in the Guaranteed Interest Account and to the Loan Account will be
.5% higher than otherwise applicable. Neither increase is guaranteed.
The Company bears the full investment risk for the Fund Value allocated to
the Guaranteed Interest Account.
LIMITATIONS ON AMOUNTS IN THE GUARANTEED INTEREST ACCOUNT
No net premium or transfer to the Guaranteed Interest Account will be
accepted which would cause the Guaranteed Interest Account to exceed $250,000 on
the date of payment or transfer. The Company reserves the right to increase or
decrease this limit in the future. For payments which exceed the limit, the
Company will accept the portion of the payment up to $250,000 and will return
the excess payment to the Policy Owner. For transfers which exceed the limit,
the Company will accept the portion of the transfer up to the $250,000. The
amount of the requested transfer which would otherwise cause the Guaranteed
Interest Account to exceed $250,000 will be retained in the Subaccounts in the
same proportion that the amount actually
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<PAGE> 48
transferred bears to the total requested transfer amount. These limits are
waived in the event the Policy Owner elects the Right to Exchange Policy. See
"Right to Exchange Policy", page 26.
DEATH BENEFIT
The death benefit under the Policy will be determined in the same fashion
for a Policy Owner who has Fund Value in the Guaranteed Interest Account as for
a Policy Owner who has Fund Value in the Subaccounts. The death benefit under
Option I will be equal to the Specified Amount of the Policy plus the increase
in Fund Value since the last Monthly Anniversary Day or, if greater, Fund Value
on the date of death plus Fund Value on the last Monthly Anniversary Day
multiplied by a death benefit percentage. Under Option II, the death benefit
will be equal to the Specified Amount of the Policy plus the Fund Value or, if
greater, Fund Value on the date of death plus Fund Value on the last Monthly
Anniversary Day multiplied by a death benefit percentage. See "Death Benefits
under the Policy," page 19.
POLICY CHARGES
Deductions from premium, monthly deductions from the Fund Value, and Fund
Charges will be the same for Policy Owners who allocate net premiums or transfer
Fund Value to the Guaranteed Interest Account as for Policy Owners who allocate
net premiums to the Subaccounts. These charges include the sales and tax
charges; the charges for the cost of insurance, administrative charge, the
charge for any optional insurance benefits added by Rider; and administrative
Fund Charge and the sales Fund Charge. Fees for Partial Surrenders and, if
applicable, transfer charges, will also be deducted from the Guaranteed Interest
Account.
Charges applicable to the Portfolios, including the operating expenses of
the Portfolios, as well as the investment advisory fee charged by the Portfolio
managers, will not be paid directly or indirectly by Policy Owners to the extent
the Fund Value is allocated to the Guaranteed Interest Account. Likewise, the
mortality and expense risk charge applicable to the Fund Value allocated to the
Subaccounts is not deducted from Fund Value allocated to the Guaranteed Interest
Account. Any amounts that the Company pays for income taxes allocable to the
Subaccounts will not be charged against the Guaranteed Interest Account.
However, it is important to remember that Policy Owners will not participate in
the investment experience of the Subaccounts to the extent that Fund Values are
allocated to the Guaranteed Interest Account.
TRANSFERS
Amounts may be transferred after the Free Look Period from the Subaccounts
to the Guaranteed Interest Account and from the Guaranteed Interest Account to
the Subaccounts, subject to the following limitations.
Transfers to the Guaranteed Interest Account may be made at any time and in
any amount, subject to the $250,000 limit on total amounts allocated to the
Guaranteed Interest Account referenced above. These limits are waived in the
event the Policy Owner elects the Right to Exchange the Policy. See "Right to
Exchange Policy", page 26.
Transfers from the Guaranteed Interest Account to the Subaccounts are
limited to one in any Policy year. Further, transfers from the Guaranteed
Interest Account are limited to the greater of $5,000 and 25% of the Fund Value
allocated to the Guaranteed Interest Account on the date of the transfer.
Transfers from the Guaranteed Interest Account may only be made during the time
period which begins on the Policy Anniversary and which ends 30 days after the
Policy Anniversary. If the transfer request is received on the Policy
Anniversary, it will be processed as of the Policy Anniversary; if it is
received within 30 days after the Policy Anniversary, the transfer will be
effective as of the Valuation Date when it is received. Any request received
within 10 days before the Policy Anniversary will be deemed received on the
Policy Anniversary. Any transfer requests received at other times will not be
honored, and will be returned to the Policy Owner.
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<PAGE> 49
Currently there is no charge imposed upon transfers; however, the Company
reserves the right to assess such a charge in the future and to impose other
limitations on the number of transfers, the amount of transfers, and the amount
remaining in the Guaranteed Interest Account or Subaccounts after a transfer.
SURRENDERS AND POLICY LOANS
The Policy Owner may also make Full Surrenders, Partial Surrenders, and
Preferred Partial Surrenders from the Guaranteed Interest Account to the same
extent as a Policy Owner who has invested in the Subaccounts. See "Full
Surrender," page 28, "Partial Surrenders, and Preferred Partial Surrenders,"
page 28. Transfers and surrenders payable from the Guaranteed Interest Account,
and the payment of Policy loans allocated to the Guaranteed Interest Account,
may be delayed for up to six months. However, with respect to Policies issued
for delivery to residents of the Commonwealth of Pennsylvania, the Company will
not delay payment of surrenders or loans, the proceeds of which will be used to
pay premiums on the Policy.
MORE ABOUT THE POLICY
OWNERSHIP
The Policy Owner is the individual named as such in the application or in
any later change shown in the Company's records. While the Insured is living,
the Policy Owner alone has the right to receive all benefits and exercise all
rights that the Policy grants or the Company allows.
JOINT OWNERS
If more than one person is named as Policy Owner, they are joint owners.
Any Policy transaction requires the signature of all persons named jointly.
Unless otherwise provided, if a joint owner dies, ownership passes to the
surviving joint owner(s). When the last joint owner dies, ownership passes
through that person's estate, unless otherwise provided.
BENEFICIARY
The Beneficiary is the individual named as such in the application or any
later change shown in the Company's records. The Policy Owner may change the
Beneficiary at any time during the life of the Insured by written request on
forms provided by the Company, which must be received by the Company at its Home
Office. The change will be effective as of the date this form is signed.
Contingent and/or concurrent Beneficiaries may be designated. The Policy Owner
may designate a permanent Beneficiary, whose rights under the Policy cannot be
changed without his or her consent. Unless otherwise provided, if no designated
Beneficiary is living upon the death of the Insured, the Policy Owner or the
Policy Owner's estate is the Beneficiary.
The Company will pay the death benefit proceeds to the Beneficiary. Unless
otherwise provided, in order to receive proceeds at the Insured's death, the
Beneficiary must be living at the time of the Insured's death.
THE POLICY
This Policy is a contract between the Policy Owner and the Company. The
entire contract consists of the Policy, a copy of the initial application, all
subsequent applications to change the Policy, any endorsements, all Riders, and
all additional Policy information sections (specification pages) added to the
Policy.
NOTIFICATION AND CLAIMS PROCEDURES
Any election, designation, change, assignment, or request made by the
Policy Owner must be in writing on a form acceptable to the Company. The Company
is not liable for any action taken before such written notice is received and
recorded. The Company may require that the Policy be returned for any Policy
change or upon its surrender.
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<PAGE> 50
In the event of an Insured's death while the Policy is in force notice
should be given to the Company as soon as possible. Claim procedure instructions
will be sent immediately. As due proof of death, the Company may require proof
of Age and a certified copy of a death certificate. The Company may also require
the Beneficiary and the Insured's next of kin to sign authorizations as part of
this process. These authorization forms allow the Company to obtain information
about the Insured, including but not limited to medical records of physicians
and hospitals used by the Insured.
PAYMENTS
The Company will pay death benefit proceeds, the Surrender Value on
surrender, Partial Surrenders, Preferred Partial Surrenders, and loan proceeds
based on allocations made to the Subaccounts, and will effect a transfer between
Subaccounts or from the Variable Account to the Guaranteed Interest Account
within seven days after the Company receives all the information needed to
process a payment.
However, the Company can postpone the calculation or payment of such a
payment or transfer of amounts based on investment performance of the
Subaccounts if:
The New York Stock Exchange is closed on other than customary weekend
and holiday closing or trading on the New York Stock Exchange is restricted
as determined by the SEC; or
An emergency exists, as determined by the SEC, as a result of which
disposal of securities is not reasonably practicable or it is not
reasonably practicable to determine the value of the Account's net assets;
or
The SEC by order permits postponement for the protection of Policy
Owners.
PAYMENT PLAN/SETTLEMENT PROVISIONS
Maturity or surrender benefits may be used to purchase a payment plan
providing monthly income for the lifetime of the Insured, and death benefit
proceeds may be used to purchase a payment plan providing monthly income for the
lifetime of the Beneficiary. The monthly payments consisting of proceeds plus
interest will be paid in equal installments for at least ten years. The purchase
rates for the payment plan are guaranteed not to exceed those shown in the
Policy, but current rates that are lower (i.e., providing greater income) may be
established by the Company from time to time. This benefit is not available if
the income would be less than $25 a month. Maturity or surrender benefits or
death benefit proceeds may be used to purchase any other payment plan that the
Company makes available at that time.
PAYMENT IN CASE OF SUICIDE
If the Insured dies by suicide, while sane or insane, within two years from
the Policy Date or Reinstatement Date, the Company will limit the death benefit
proceeds to the premium payments less any Partial Surrender and Preferred
Partial Surrender amounts (and their fees) and less any Outstanding Debt reduced
by any Unearned Loan Interest. If an Insured dies by suicide, while sane or
insane, within two years of the effective date of any increase in the Specified
Amount, the Company will refund the cost of insurance charges made with respect
to such increase.
ASSIGNMENT
The Policy Owner may assign a Policy as collateral security for a loan or
other obligation. No assignment will bind the Company unless the original, or a
copy, is received at the Company's Home Office, and it will be effective only
when recorded by the Company. An assignment does not change the ownership of the
Policy. However, after an assignment, the rights of any Policy Owner or
Beneficiary will be subject to the assignment. The entire Policy, including any
attached payment option or Rider, will be subject to the assignment. The Company
will rely solely on the assignee's statement as to the amount of the assignee's
interest. The Company will not be responsible for the validity of any
assignment. Unless otherwise provided, the assignee may exercise all rights this
Policy grants except (a) the right to change the Policy Owner or Beneficiary;
and (b) the right
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to elect a payment option. Assignment of a Policy that is a modified endowment
contract may generate taxable income. (See "Federal Income Tax Considerations",
page 35.)
ERRORS ON THE APPLICATION
If the Age or gender of the Insured has been misstated, the death benefit
under this Policy will be the greater of that which would be purchased by the
most recent cost of insurance charge at the correct Age and gender, or the death
benefit derived by multiplying the Fund Value by the death benefit percentage
for the correct Age and gender. If unisex cost of insurance rates apply, no
adjustment will be made for a misstatement of sex. See "Cost of Insurance", page
31.
INCONTESTABILITY
The Company may contest the validity of this Policy if any material
misstatements are made in the application. However, the Policy will be
incontestable as follows: the initial Specified Amount cannot be contested after
the Policy has been in force during the Insured's lifetime for two years from
the Policy Date; and an increase in the Specified Amount or any reinstatement
cannot be contested after the increase or the reinstated policy has been in
force during an Insured's lifetime for two years from its effective date.
POLICY ILLUSTRATIONS
Upon request, the Company will send the Policy Owner an illustration of
future benefits under the Policy based on both guaranteed and current cost
assumptions.
DISTRIBUTION OF THE POLICY
MONY Securities Corp. ("MSC"), a wholly owned subsidiary of the Company, is
principal underwriter (distributor) of the Policies. MSC is registered as a
broker-dealer under the Securities Exchange Act of 1934 and is a member of the
National Association of Securities Dealers. The Policies are sold by individuals
who are registered representatives of MSC and who are also licensed as life
insurance agents for the Company. The Policies may also be sold through other
broker/dealers authorized by MSC and applicable law to do so.
Except where MSC has authorized other broker/dealers to sell the Policies
(as described in the preceding paragraph), compensation payable for the sale of
the Policies will be based upon the following schedule. After issue of the
Contract, commissions will equal at most 50 percent of premiums paid.
Thereafter, commissions will equal at most 3.0 percent of any additional
premiums plus, on the sixth and each succeeding Policy Anniversary for so long
as the Policy shall remain in force, .10 percent of the Fund Value allocated to
the Subaccounts. Upon any subsequent increase in Specified Amount, commissions
will equal at most 50 percent of premiums paid on or after the increase up to a
maximum amount. Thereafter, commissions will return to no more than the 3.0
percent level. Further, registered representatives may be eligible to receive
certain bonuses and other benefits based on the amount of earned commissions.
Commissions may be required to be repaid to the Company if Sales Charges
are refunded upon exercise of the exchange privileges during the first 24 months
after the Policy Date or within 24 months following an increase in Specified
Amount.
In addition, registered representatives who meet specified production
levels may qualify, under sales incentive programs adopted by Company, to
receive noncash compensation such as expense-paid trips, expense-paid
educational seminars and merchandise. Company makes no separate deductions,
other than previously described, from premiums to pay sales commissions or sales
expenses.
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MORE ABOUT THE COMPANY
MANAGEMENT
The directors and officers of the Company are listed below. The business
address for all directors and officers of MONY Life Insurance Company of America
is 1740 Broadway, New York, New York 10019.
Current Officers and Directors of MONY America are:
<TABLE>
<CAPTION>
NAME POSITION AND OFFICES WITH DEPOSITOR
----------------------------------------- -----------------------------------------------
<S> <C>
Michael I. Roth.......................... Director, Chairman and Chief Executive Officer
Samuel J. Foti........................... Director, President and Chief Operating Officer
Richard E. Connors....................... Director
Richard Daddario......................... Director, Vice President, and Controller
Phillip A. Eisenberg..................... Vice President and Actuary
Thomas M. Donohue........................ Vice President
Margaret G. Gale......................... Vice President
Michael Slipowitz........................ Vice President
Stephen J. Hall.......................... Director
Edward E. Hill........................... Vice President -- Chief Compliance Officer
Evelyn L. Peos........................... Vice President
Theodore J. Shalack...................... Director and Vice President
Kenneth M. Levine........................ Director
David S. Waldman......................... Secretary
David V. Weigel.......................... Treasurer
Charles D. Wyckoff....................... Director
</TABLE>
No officer or director listed above receives any compensation from the
Variable Account. No separately allocable compensation has been paid by the
Company or any of its affiliates to any person listed for services rendered to
the Account.
STATE REGULATION
The Company is subject to the laws of the state of Arizona governing
insurance companies and to regulation by the Commissioner of Insurance of
Arizona. In addition, it is subject to the insurance laws and regulations of the
other states and jurisdictions in which it is licensed or may become licensed to
operate. An annual statement in a prescribed form must be filed with the
Commissioner of Insurance of Arizona and with regulatory authorities of other
states on or before March 1st in each year. This statement covers the operations
of the Company for the preceding year and its financial condition as of December
31st of that year. The Company's affairs are subject to review and examination
at any time by the Commissioner of Insurance or his agents, and subject to full
examination of Company's operations at periodic intervals.
TELEPHONE TRANSFER PRIVILEGES
A Policy Owner may request a transfer of Fund Value or change allocation
instructions for future premiums by telephone if an authorization for telephone
transfer form has been completed, signed, and received at the Company's Syracuse
Operations Center. All or part of any telephone conversation with respect to
transfer and allocation instructions may be recorded by the Company. Telephone
instructions received by the Company by 4:00 p.m. Eastern time on any Valuation
Date will be effected as of the end of that Valuation Date in accordance with
the Policy Owner's instructions, subject to the limitations stated in this
prospectus (presuming that the Free Look Period has expired). The Company
reserves the right to deny any telephone transfer or allocation request. If all
telephone lines are busy (which might occur, for example, during periods of
substantial market fluctuations), Policy Owners might not be able to request
transfers by telephone and would have to submit written requests. Telephone
transfer and allocation instructions will only be accepted if complete and
correct.
The Company has adopted guidelines relating to telephone transfers and
allocation instructions that, among other things, outlines procedures to be
followed which are designed, and which the Company believes
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<PAGE> 53
are reasonable, to prevent unauthorized instructions. If these procedures are
followed, the Company shall not be liable for, and the Policy Owner will
therefore bear the entire risk of, any loss as a result of the Company's
following telephone instructions in the event that such instructions prove to be
fraudulent. A copy of the guidelines and the Company's form for electing
telephone transfer privileges is available from licensed agents of the Company
who are also registered representatives of MSC or by calling 1-800-487-6669. The
Company's form must be signed and received at the Company's Syracuse Operations
Center before telephone transfers will be accepted.
LEGAL PROCEEDINGS
There are no legal proceedings pending to which the Variable Account is a
party, or which would materially affect the Variable Account.
LEGAL MATTERS
Legal matters in connection with the issue and sale of the Policies
described in this Prospectus and the organization of the Company, its authority
to issue the Policies under Arizona law, and the validity of the forms of the
Policies under Arizona law have been passed on by the Vice President and Deputy
General Counsel of the Mutual of New York.
Legal matters relating to the federal securities and federal income tax
laws have been passed upon by Edward P. Bank, Vice President and Deputy General
Counsel of Mutual of New York.
EXPERTS
Actuarial matters included in this Prospectus have been examined by Evelyn
L. Peos, FSA, Vice President of MONY America, whose opinion is filed as an
exhibit to the Registration Statement.
REGISTRATION STATEMENT
A Registration Statement under the Securities Act of 1933 has been filed
with the SEC relating to the offering described in this Prospectus. This
Prospectus does not include all of the information set forth in the Registration
Statement, as portions have been omitted pursuant to the rules and regulations
of the SEC. The omitted information may be obtained at the SEC's principal
office in Washington, D.C., upon payment of the SEC's prescribed fees.
INDEPENDENT ACCOUNTANTS
The audited financial statements for the Variable Account and for Company
included in this Prospectus and in the Registration Statement have been audited
by Coopers & Lybrand L.L.P., independent accountants, as indicated in their
report hereon, and are included in reliance upon the authority of said firm as
experts in accounting and auditing. Coopers & Lybrand's office is located at
1301 Avenue of the Americas, New York, New York, 10019.
FINANCIAL STATEMENTS
The audited financial statements for the Variable Account as of December
31, 1995 and the periods ended December 31, 1995 and 1994 are set forth herein,
starting on page F-1. The audited financial statements of the Company as of and
for the years ended December 1995 and 1994 are set forth herein starting on page
F-20.
The financial statements of the Variable Account and Company as of and for
the periods ended December 31, 1995 and 1994 have been audited by Coopers &
Lybrand L.L.P. The financial statements of the Company should be distinguished
from the financial statements of the Variable Account and should be considered
only as bearing upon the ability of the Company to meet its obligations under
the Policies.
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FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY America Variable Account L:
Report of Independent Accountants................................................... F-2
Statements of assets and liabilities as of December 31, 1995........................ F-3
Statements of operations for the year ended December 31, 1995....................... F-5
Statements of changes in net assets for the years ended December 31, 1995 and
1994............................................................................. F-7
Notes to financial statements....................................................... F-9
Report of Independent Accountants................................................... F-12
Statements of operations for the year ended December 31, 1994....................... F-13
Notes to financial statements....................................................... F-14
Report of Independent Accountants................................................... F-16
Statements of operations for the year ended December 31, 1993....................... F-17
Notes to financial statements....................................................... F-18
With respect to MONY Life Insurance Company of America:
Report of Independent Accountants................................................... F-20
Balance sheets as of December 31, 1995 and 1994..................................... F-21
Statements of operations for the years ended December 31, 1995 and 1994............. F-22
Statements of capital and surplus for the years ended December 31, 1995 and 1994.... F-23
Statements of cash flows for the years ended December 31, 1995 and 1994............. F-24
Notes to financial statements....................................................... F-25
</TABLE>
F-1
<PAGE> 55
MONY SERIES FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account L (comprising, respectively, the Variable Life's
Equity Growth, Equity Income, Intermediate Term Bond, Long Term Bond,
Diversified and Money Market Subaccounts and the Variable Universal Life's
Intermediate Term Bond, Long Term Bond, Government Securities, Money Market,
Equity, Small Cap, Managed, International Growth and High Yield Bond Subaccounts
as of December 31, 1995, for the Variable Life's Subaccount the related
statements of operations for the year then ended and the statements of changes
in net assets for each of the two years in the period then ended, and for the
Variable Universal Life's Subaccounts the statements of operations and
statements of changes in net assets for the Intermediate Term Bond Subaccount
for which the period is from April 20, 1995 (commencement of operations) to
December 31, 1995, the Long Term Bond Subaccount for which the period is from
March 31, 1995 (commencement of operations) to December 31, 1995, the Government
Securities and High Yield Subaccounts for which the period is March 20, 1995
(commencement of operations) to December 31, 1995, the Money Market Subaccount
for which the period is from February 17, 1995 (commencement of operations) to
December 31, 1995, the Equity, Managed and International Subaccounts for which
the period is from March 8, 1995 (commencement of operations) to December 31,
1995, and the Small Cap Subaccounts for which the period is from March 9, 1995
(commencement of operations) to December 31, 1995. These financial statements
are the responsibility of MONY America's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995, by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L as of December 31,
1995, the results of their operations, and the changes in their net assets for
each of the periods referred to above, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 19, 1996
F-2
<PAGE> 56
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VARIABLE LIFE
---------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).... $ 493,463 $ 499,432 $ 180,391 $ 95,586 $ 854,895 $ 90,294
========= ========= ========= ========= ========= =========
Investments in MONY Series Fund,
Inc. at net asset value (Note
2)............................ $ 551,041 $ 605,183 $ 182,778 $ 106,118 $ 989,489 $ 90,294
Amount due from MONY America.... 0 9 0 0 65 6
Amount due from MONY Series
Fund, Inc. ................... 239 338 91 1 357 4
---------- ---------- ---------- ---------- ---------- ----------
Total assets.......... 551,280 605,530 182,869 106,119 989,911 90,304
---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES
Amount due to MONY America...... 239 338 91 1 357 4
Amount due to MONY Series
Fund, Inc. ................... 0 9 0 0 65 6
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities..... 239 347 91 1 422 10
---------- ---------- ---------- ---------- ---------- ----------
Net assets...................... $ 551,041 $ 605,183 $ 182,778 $ 106,118 $ 989,489 $ 90,294
========= ========= ========= ========= ========= =========
Net assets consist of:
Contractholders' net
payments................. $ 531,034 $ 578,333 $ 207,122 $ 124,860 $1,050,514 $ 192,695
Cost of insurance
withdrawals (Note 3)..... (323,941) (413,683) (173,922) (129,844) (784,109) (172,053)
Undistributed net
investment income........ 118,647 253,780 155,523 95,530 461,971 69,652
Accumulated net realized
gains (loss) on
investments.............. 167,723 81,002 (8,332) 5,040 126,519 0
Unrealized appreciation of
investments.............. 57,578 105,751 2,387 10,532 134,594 0
---------- ---------- ---------- ---------- ---------- ----------
Net assets...................... $ 551,041 $ 605,183 $ 182,778 $ 106,118 $ 989,489 $ 90,294
========= ========= ========= ========= ========= =========
Number of units outstanding*.... 15,643 16,377 8,556 3,869 35,607 5,499
---------- ---------- ---------- ---------- ---------- ----------
Net asset value per unit
outstanding................... $ 35.23 $ 36.95 $ 21.36 $ 27.43 $ 27.79 $ 16.42
========= ========= ========= ========= ========= =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 57
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY SMALL CAP
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...................... $ 27,635 $261,535 $172,086 $1,700,817 $1,021,263 $604,890
========== ========= ========= ========== ========== =========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)........................ $ 0 $ 0 $ 0 $ 0 $1,044,476 $600,827
Investments in MONY Series Fund, Inc. at net asset
value (Note 2).................................. 26,720 269,812 171,378 1,700,817 0 0
Amount due from Enterprise Accumulation Trust..... 0 0 0 0 364 306
Amount due from MONY America...................... 0 22 0 29,305 375 483
Amount due from MONY Series Fund, Inc............. 13 6 23 7 0 0
---------- --------- --------- --------- --------- ---------
Total assets.............................. 26,733 269,840 171,401 1,730,129 1,045,215 601,616
---------- --------- --------- --------- --------- ---------
LIABILITIES
Amount due to Enterprise Accumulation Trust....... 0 0 0 0 375 483
Amount due to MONY America........................ 13 6 23 7 364 306
Amount due to MONY Series Fund, Inc............... 0 22 0 29,305 0 0
---------- --------- --------- --------- --------- ---------
Total liabilities......................... 13 28 23 29,312 739 789
---------- --------- --------- --------- --------- ---------
Net assets........................................ $ 26,720 $269,812 $171,378 $1,700,817 $1,044,476 $600,827
========== ========= ========= ========= ========= =========
Net assets consist of:
Contractholders' net payments................. $ 27,817 $254,451 $171,675 $1,710,823 $1,065,456 $644,769
Cost of insurance withdrawals (Note 3)........ (1,970) (8,040) (4,816) (30,382) (92,752) (66,072)
Undistributed net investment income........... 1,414 13,958 5,094 20,376 25,168 16,433
Accumulated net realized gains on
investments................................. 374 1,166 133 0 23,391 9,760
Unrealized appreciation (depreciation) of
investments................................. (915) 8,277 (708) 0 23,213 (4,063)
---------- --------- --------- --------- --------- ---------
Net assets........................................ $ 26,720 $269,812 $171,378 $1,700,817 $1,044,476 $600,827
========== ========= ========= ========= ========= =========
Number of units outstanding*...................... 2,464 22,127 15,959 163,465 80,766 52,194
---------- --------- --------- --------- --------- ---------
Net asset value per unit outstanding.............. $ 10.84 $ 12.19 $ 10.74 $ 10.40 $ 12.93 $ 11.51
========== ========= ========= ========= ========= =========
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------
INTERNATIONAL HIGH YIELD
MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------- ----------
<S> <C> <C> <C>
ASSETS
Investments at cost (Note 4)...................... $6,147,845 $ 379,526 $352,348
========== =========== =========
Investments in Enterprise Accumulation Trust at
net asset value (Note 2)........................ $6,239,963 $ 379,417 $352,709
Investments in MONY Series Fund, Inc. at net asset
value (Note 2).................................. 0 0 0
Amount due from Enterprise Accumulation Trust..... 15,893 202 61
Amount due from MONY America...................... 1,689 376 173
Amount due from MONY Series Fund, Inc............. 0 0 0
---------- ----------- ---------
Total assets.............................. 6,257,545 379,995 352,943
---------- ----------- ---------
LIABILITIES
Amount due to Enterprise Accumulation Trust....... 1,689 376 173
Amount due to MONY America........................ 15,893 202 61
Amount due to MONY Series Fund, Inc............... 0 0 0
---------- ----------- ---------
Total liabilities......................... 17,582 578 234
---------- ----------- ---------
Net assets........................................ $6,239,963 $ 379,417 $352,709
========== =========== =========
Net assets consist of:
Contractholders' net payments................. $6,329,873 $ 389,734 $362,971
Cost of insurance withdrawals (Note 3)........ (489,373) (34,312) (18,214)
Undistributed net investment income........... 184,073 17,938 7,401
Accumulated net realized gains on
investments................................. 123,272 6,166 190
Unrealized appreciation (depreciation) of
investments................................. 92,118 (109) 361
---------- ----------- ---------
Net assets........................................ $6,239,963 $ 379,417 $352,709
========== =========== =========
Number of units outstanding*...................... 465,095 31,566 31,730
---------- ----------- ---------
Net asset value per unit outstanding.............. $ 13.42 $ 12.02 $ 11.12
========== =========== =========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
<PAGE> 58
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
VARIABLE LIFE
-----------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income..................... $ 36,269 $ 31,156 $ 10,214 $ 5,730 $ 52,334 $ 6,355
Mortality and expense risk charges
(Note 3).......................... 2,810 3,334 1,049 629 5,530 693
-------- -------- ------- ------- -------- ------
Net investment income............... 33,459 27,822 9,165 5,101 46,804 5,662
-------- -------- ------- ------- -------- ------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales............... 201,342 154,706 30,377 41,657 185,053 264,962
Cost of shares sold............... 171,034 115,616 28,318 36,449 149,611 264,962
-------- -------- ------- ------- -------- ------
Net realized gains on investments... 30,308 39,090 2,059 5,208 35,442 0
Net increase in unrealized
appreciation of investments....... 57,362 88,922 11,732 16,634 125,651 0
-------- -------- ------- ------- -------- ------
Net realized and unrealized gains on
investments....................... 87,670 128,012 13,791 21,842 161,093 0
-------- -------- ------- ------- -------- ------
Net increase in net assets resulting
from operations................... $121,129 $155,834 $ 22,956 $ 26,943 $207,897 $ 5,662
======== ======== ======= ======= ======== ======
</TABLE>
See notes to financial statements.
F-5
<PAGE> 59
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ------------------ ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
APRIL 20, MARCH 31, MARCH 20, FEBRUARY 17, MARCH 8,
1995* 1995* 1995* 1995* 1995*
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995 1995
--------------- --------------- --------------- ------------------ ---------------
<S> <C> <C> <C> <C> <C>
Dividend income.................. $ 1,489 $14,565 $ 5,452 $ 23,644 $ 27,509
Mortality and expense risk
charges (Note 3)............... 75 607 358 3,268 2,341
------- ------- ------- ---------- --------
Net investment income............ 1,414 13,958 5,094 20,376 25,168
------- ------- ------- ---------- --------
Realized and unrealized gains on
investments (Note 2):
Proceeds from sales............ 14,675 23,454 20,277 8,312,134 187,733
Cost of shares sold............ 14,301 22,288 20,144 8,312,134 164,342
------- ------- ------- ---------- --------
Net realized gains on
investments.................... 374 1,166 133 0 23,391
Net increase (decrease) in
unrealized appreciation of
investments.................... (915) 8,277 (708) 0 23,213
------- ------- ------- ---------- --------
Net realized and unrealized gains
(losses) on investments........ (541) 9,443 (575) 0 46,604
------- ------- ------- ---------- --------
Net increase in net assets
resulting from operations...... $ 873 $23,401 $ 4,519 $ 20,376 $ 71,772
======= ======= ======= ========== ========
<CAPTION>
VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 9, MARCH 8, MARCH 8, MARCH 20,
1995* 1995* 1995* 1995*
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Dividend income.................. $17,779 $ 197,666 $18,775 $ 8,030
Mortality and expense risk
charges (Note 3)............... 1,346 13,593 837 629
-------- ---------- ------- --------
Net investment income............ 16,433 184,073 17,938 7,401
-------- ---------- ------- --------
Realized and unrealized gains on
investments (Note 2):
Proceeds from sales............ 156,201 1,299,150 85,432 112,342
Cost of shares sold............ 146,441 1,175,878 79,266 112,152
-------- ---------- ------- --------
Net realized gains on
investments.................... 9,760 123,272 6,166 190
Net increase (decrease) in
unrealized appreciation of
investments.................... (4,063) 92,118 (109) 361
-------- ---------- ------- --------
Net realized and unrealized gains
(losses) on investments........ 5,697 215,390 6,057 551
-------- ---------- ------- --------
Net increase in net assets
resulting from operations...... $22,130 $ 399,463 $23,995 $ 7,952
======== ========== ======= ========
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
F-6
<PAGE> 60
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
VARIABLE LIFE
-------------------------------------------------------------------------------------
EQUITY GROWTH EQUITY INCOME INTERMEDIATE TERM LONG TERM
SUBACCOUNT SUBACCOUNT BOND SUBACCOUNT BOND SUBACCOUNT
------------------- ------------------- ------------------- -------------------
1995 1994 1995 1994 1995 1994 1995 1994
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income...................... $ 33,459 $ 6,953 $ 27,822 $ 29,418 $ 9,165 $ 8,849 $ 5,101 $ 6,859
Net realized gains on investments.......... 30,308 9,428 39,090 11,825 2,059 765 5,208 1,489
Net increase (decrease) in unrealized
appreciation of investments.............. 57,362 (10,655) 88,922 (40,147) 11,732 (13,415) 16,634 (16,392)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations.................. 121,129 5,726 155,834 1,096 22,956 (3,801) 26,943 (8,044)
-------- -------- -------- -------- -------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.... 246,538 40,449 56,024 49,919 13,113 12,962 7,195 6,144
Net asset value of units redeemed or used
to meet contract obligations............. 164,237 118,555 132,231 79,426 23,804 21,236 29,360 18,657
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) from unit
transactions............................... 82,301 (78,106) (76,207) (29,507) (10,691) (8,274) (22,165) (12,513)
-------- -------- -------- -------- -------- -------- -------- --------
Net increase (decrease) in net assets........ 203,430 (72,380) 79,627 (28,411) 12,265 (12,075) 4,778 (20,557)
Net assets beginning of year................. 347,611 419,991 525,556 553,967 170,513 182,588 101,340 121,897
-------- -------- -------- -------- -------- -------- -------- --------
Net assets end of year*...................... $551,041 $347,611 $605,183 $525,556 $182,778 $170,513 $106,118 $101,340
======== ======== ======== ======== ======== ======== ======== ========
Units outstanding beginning of year.......... 12,809 15,712 18,826 19,878 9,112 9,552 4,777 5,361
Units issued during the year................. 8,221 1,506 1,763 1,767 652 692 296 290
Units redeemed during the year............... 5,387 4,409 4,212 2,819 1,208 1,132 1,204 874
-------- -------- -------- -------- -------- -------- -------- --------
Units outstanding end of year................ 15,643 12,809 16,377 18,826 8,556 9,112 3,869 4,777
======== ======== ======== ======== ======== ======== ======== ========
- ---------------
*Includes undistributed net investment income
of: $118,647 $ 85,188 $253,780 $225,958 $155,523 $146,358 $ 95,530 $ 90,429
<CAPTION>
VARIABLE LIFE
-----------------------------------------
DIVERSIFIED MONEY MARKET
SUBACCOUNT SUBACCOUNT
------------------- -------------------
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
From operations:
Net investment income...................... $ 46,804 $ 23,875 $ 5,662 $ 5,483
Net realized gains on investments.......... 35,442 17,533 0 0
Net increase (decrease) in unrealized
appreciation of investments.............. 125,651 (38,475) 0 0
-------- -------- -------- --------
Net increase (decrease) in net assets
resulting from operations.................. 207,897 2,933 5,662 5,483
-------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units.... 90,610 95,640 137,395 93,348
Net asset value of units redeemed or used
to meet contract obligations............. 145,580 148,999 235,050 18,485
-------- -------- -------- --------
Net increase (decrease) from unit
transactions............................... (54,970) (53,359) (97,655) 74,863
-------- -------- -------- --------
Net increase (decrease) in net assets........ 152,927 (50,426) (91,993) 80,346
Net assets beginning of year................. 836,562 886,988 182,287 101,941
-------- -------- -------- --------
Net assets end of year*...................... $989,489 $836,562 $ 90,294 $182,287
======== ======== ======== ========
Units outstanding beginning of year.......... 37,807 40,254 11,659 6,734
Units issued during the year................. 3,647 4,346 8,586 6,128
Units redeemed during the year............... 5,847 6,793 14,746 1,203
-------- -------- -------- --------
Units outstanding end of year................ 35,607 37,807 5,499 11,659
======== ======== ======== ========
- ---------------
*Includes undistributed net investment income
of: $461,971 $415,167 $ 69,652 $ 63,990
</TABLE>
See notes to financial statements.
F-7
<PAGE> 61
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------- ---------------- ---------------- ------------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
APRIL 20, 1995** MARCH 31, 1995** MARCH 20, 1995** FEBRUARY 17, 1995** MARCH 8, 1995**
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995 1995
---------------- ---------------- ---------------- ------------------- ---------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income........... $ 1,414 $ 13,958 $ 5,094 $ 20,376 $ 25,168
Net realized gains on
investments................... 374 1,166 133 0 23,391
Net increase (decrease) in
unrealized appreciation of
investments................... (915) 8,277 (708) 0 23,213
------- -------- -------- ---------- ----------
Net increase in net assets
resulting from operations....... 873 23,401 4,519 20,376 71,772
------- -------- -------- ---------- ----------
From unit transactions:
Net proceeds from the issuance
of units...................... 29,827 254,605 171,901 8,289,772 1,073,215
Net asset value of units
redeemed or used to meet
contract obligations.......... 3,980 8,194 5,042 6,609,331 100,511
------- -------- -------- ---------- ----------
Net increase from unit
transactions.................... 25,847 246,411 166,859 1,680,441 972,704
------- -------- -------- ---------- ----------
Net increase in net assets........ 26,720 269,812 171,378 1,700,817 1,044,476
Net assets beginning of year...... 0 0 0 0 0
------- -------- -------- ---------- ----------
Net assets end of year*........... $ 26,720 $269,812 $171,378 $ 1,700,817 $ 1,044,476
======= ======== ======== ========== ==========
Units outstanding beginning of
year............................ 0 0 0 0 0
Units issued during the year...... 2,838 22,925 16,439 807,565 88,980
Units redeemed during the year.... 374 798 480 644,100 8,214
------- -------- -------- ---------- ----------
Units outstanding end of year..... 2,464 22,127 15,959 163,465 80,766
======= ======== ======== ========== ==========
- ---------------
* Includes undistributed net
investment income of: $ 1,414 $ 13,958 $ 5,094 $ 20,376 $ 25,168
** Commencement of operations.
<CAPTION>
VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
--------------- --------------- --------------- ----------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MARCH 9, 1995** MARCH 8, 1995** MARCH 8, 1995** MARCH 20, 1995**
THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
From operations:
Net investment income........... $ 16,433 $ 184,073 $ 17,938 $ 7,401
Net realized gains on
investments................... 9,760 123,272 6,166 190
Net increase (decrease) in
unrealized appreciation of
investments................... (4,063) 92,118 (109) 361
------- ---------- ------- -------
Net increase in net assets
resulting from operations....... 22,130 399,463 23,995 7,952
------- ---------- ------- -------
From unit transactions:
Net proceeds from the issuance
of units...................... 662,265 6,530,478 394,240 367,392
Net asset value of units
redeemed or used to meet
contract obligations.......... 83,568 689,978 38,818 22,635
------- ---------- ------- -------
Net increase from unit
transactions.................... 578,697 5,840,500 355,422 344,757
------- ---------- ------- -------
Net increase in net assets........ 600,827 6,239,963 379,417 352,709
Net assets beginning of year...... 0 0 0 0
------- ---------- ------- -------
Net assets end of year*........... $ 600,827 $ 6,239,963 $ 379,417 $352,709
======= ========== ======= =======
Units outstanding beginning of
year............................ 0 0 0 0
Units issued during the year...... 59,708 519,384 34,979 33,810
Units redeemed during the year.... 7,514 54,289 3,413 2,080
------- ---------- ------- -------
Units outstanding end of year..... 52,194 465,095 31,566 31,730
======= ========== ======= =======
- ---------------
* Includes undistributed net
investment income of: $ 16,433 $ 184,073 $ 17,938 $ 7,401
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-8
<PAGE> 62
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Variable Life Insurance and Variable Universal Life
Insurance Policies. These policies are issued by MONY America, which is a
wholly-owned subsidiary of The Mutual Life Insurance Company of New York
("MONY"). MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
There are currently fifteen subaccounts within the Variable Account, each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund") or the Enterprise Accumulation Trust ("Enterprise") (collectively, the
"Funds"). The subaccounts of the Variable Universal Life commenced operations
during 1995. The Funds are registered under the 1940 Act as an open end,
diversified, management investment companies.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages 66 to 128 and 129 to 174,
respectively, and should be read in conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investment:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Fund. Except for the Money Market
Portfolio, net asset values are based upon market quotations of the securities
held in each of the corresponding portfolios of the Funds. For the Money Market
Portfolio, the net asset values are based on amortized cost of the securities
held which approximates value.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal holder of the assets held by the Variable
Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for all subaccounts for 1995 aggregated $917,026.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent (for the Variable
Life Subaccounts) and .75 percent (for the Variable Universal Life Subaccounts)
of aggregate average daily net assets. As investment adviser to the Fund, it
receives amounts paid by the Fund for those services.
F-9
<PAGE> 63
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in Variable Life at cost, at December 31, 1995 consist of the
following:
<TABLE>
<CAPTION>
LONG
EQUITY EQUITY INTERMEDIATE TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------- -------- ------------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.......................... 16,883 33,841 17,489 9,679 63,665 182,287
Amount.......................... $347,395 $508,727 $179,858 $107,442 $827,619 $182,287
-------- -------- -------- -------- -------- --------
Shares acquired:
Shares.......................... 12,139 4,146 1,752 1,501 8,255 166,614
Amount.......................... $280,833 $ 75,165 $ 18,637 $ 18,863 $124,553 $166,614
Shares received for reinvestment
of dividends:
Shares.......................... 1,444 1,589 966 445 3,329 6,355
Amount.......................... $ 36,269 $ 31,156 $ 10,214 $ 5,730 $ 52,334 $ 6,355
Shares redeemed:
Shares.......................... 8,521 8,715 2,914 3,386 12,305 264,962
Amount.......................... $171,034 $115,616 $ 28,318 $ 36,449 $149,611 $264,962
-------- -------- -------- -------- -------- --------
Net change:
Shares.......................... 5,062 (2,980) (196) (1,440) (721) (91,993)
Amount.......................... $146,068 ($ 9,295) $ 533 ($11,856) $ 27,276 ($91,993)
-------- -------- -------- -------- -------- --------
Shares end of year:
Shares.......................... 21,945 30,861 17,293 8,239 62,944 90,294
Amount.......................... $493,463 $499,432 $180,391 $ 95,586 $854,895 $ 90,294
======== ======== ======== ======== ======== ========
</TABLE>
F-10
<PAGE> 64
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Variable Universal Life at cost, at December 31, 1995
consist of the following:
<TABLE>
<CAPTION>
INTERMEDIATE LONG TERM GOVERNMENT MONEY SMALL INTERNATIONAL HIGH YIELD
TERM BOND BOND SECURITIES MARKET EQUITY CAP MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ---------- ---------- ---------- -------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares
beginning
of year:
Shares.... 0 0 0 0 0 0 0 0 0
Amount.... $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
-------- --------- -------- ---------- ---------- -------- ---------- --------- --------
Shares
acquired:
Shares.... 3,719 21,651 18,234 9,989,307 51,815 40,031 262,958 82,905 86,158
Amount.... $ 40,447 $ 269,258 $186,778 $9,989,307 $1,158,096 $733,552 $7,126,057 $ 440,017 $456,470
Shares
received
for
reinvestment
of
dividends:
Shares.... 141 1,131 534 23,644 1,178 962 7,044 3,464 1,515
Amount.... $ 1,489 $ 14,565 $ 5,452 $ 23,644 $ 27,509 $ 17,779 $ 197,666 $ 18,775 $ 8,030
Shares
redeemed:
Shares.... 1,332 1,834 1,982 8,312,134 8,262 8,481 47,622 15,976 21,249
Amount.... $ 14,301 $ 22,288 $ 20,144 $8,312,134 $ 164,342 $146,441 $1,175,878 $ 79,266 $112,152
----------- --------- -------- ----------- ---------- -------- ---------- --------- --------
Net change:
Shares.... 2,528 20,948 16,786 1,700,817 44,731 32,512 222,380 70,393 66,424
Amount.... $ 27,635 $ 261,535 $172,086 $1,700,817 $1,021,263 $604,890 $6,147,845 $ 379,526 $352,348
---------- --------- -------- ---------- ---------- -------- ---------- ---------- --------
Shares end
of year:
Shares.... 2,528 20,948 16,786 1,700,817 44,731 32,512 222,380 70,393 66,424
Amount.... $ 27,635 $ 261,535 $172,086 $1,700,817 $1,021,263 $604,890 $6,147,845 $ 379,526 $352,348
========== ========= ========= ========== ========== ======== ========= =========== =========
</TABLE>
F-11
<PAGE> 65
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L:
We have audited the accompanying statements of assets and liabilities of
MONY America Variable Account L (comprising, respectively, the Equity Growth,
Equity Income, Intermediate Term Bond, Long Term Bond, Diversified and Money
Market Subaccounts) as of December 31, 1994, the related statements of
operations for the year then ended, and the statements of changes in net assets
for each of the two years in the period then ended. These financial statements
are the responsibility of MONY America's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1994 by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
subaccounts constituting MONY America Variable Account L as of December 31,
1994, the results of their operations for the year then ended, and the changes
in their net assets for each of the two years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
New York, New York
February 15, 1995
F-12
<PAGE> 66
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT TOTAL
---------- ---------- ------------ --------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income.................. $ 9,113 $ 32,658 $ 9,905 $ 7,512 $ 28,983 $ 6,478 $ 94,649
Mortality and expense risk
charges (Note 3)............... (2,160) (3,240) (1,056) (653) (5,108) (995) (13,212)
--------- --------- ---------- -------- ---------- --------- ---------
Net investment income............ 6,953 29,418 8,849 6,859 23,875 5,483 81,437
--------- --------- ---------- -------- ---------- --------- ---------
Realized and unrealized gains
(losses) on investments (Note
2):
Proceeds from sales............ 148,232 86,396 31,505 20,741 189,680 21,102 497,656
Cost of shares sold............ 138,804 74,571 30,740 19,252 172,147 21,102 456,616
--------- --------- ---------- -------- ---------- --------- ---------
Net realized gains on
investments.................... 9,428 11,825 765 1,489 17,533 0 41,040
Net decrease in unrealized
appreciation of investments.... (10,655) (40,147) (13,415) (16,392) (38,475) 0 (119,084)
--------- --------- ---------- -------- ---------- --------- ---------
Net realized and unrealized
losses on investments.......... (1,227) (28,322) (12,650) (14,903) (20,942) 0 (78,044)
--------- --------- ---------- -------- ---------- --------- ---------
Net increase (decrease) in net
assets resulting from
operations..................... $ 5,726 $ 1,096 $ (3,801) $ (8,044) $ 2,933 $ 5,483 $ 3,393
========= ========= ========== ======== ========= ========= =========
</TABLE>
See notes to financial statements.
F-13
<PAGE> 67
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used only to support Flexible Premium Variable Life Insurance
Policies. These policies are issued by MONY America, which is a wholly-owned
subsidiary of The Mutual Life Insurance Company of New York ("MONY"). MONY
America is currently taxed as a life insurance company and will include the
Variable Account's operations in its tax return. MONY America does not expect
based on current tax law, to incur any income tax burden upon the earnings or
realized capital gains attributable to the Variable Account. Based on this
expectation, no charges are currently being deducted from the Variable Account
for Federal income tax purposes.
There are currently six subaccounts within the Variable Account, each
invests only in a corresponding portfolio of the MONY Series Fund, Inc. (the
"Fund"). The Fund is registered under the 1940 Act as an open-end, diversified,
management investment company.
2. SIGNIFICANT ACCOUNTING POLICIES
A. Investments:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Fund. Except for the Money Market
Portfolio, as noted below, net asset values are based upon market quotations of
the securities held in each of the corresponding portfolios.
Portfolio Valuations:
Short-term securities are valued at amortized cost. The amortized cost of a
security is determined by valuing it at original cost and thereafter amortizing
any discount or premium at a constant rate until maturity.
Common stocks traded on national securities exchanges are valued at the
last sales price as of the close of the New York Stock Exchange or at the last
bid price for over-the-counter securities.
Bonds are valued at the last available price provided by an independent
pricing service for securities traded on a national securities exchange. Bonds
that are listed on a national securities exchange but are not traded and bonds
that are regularly traded in the over-the-counter market are valued at the mean
of the last available bid and asked prices.
All other securities, including any restricted securities, will be valued
at their fair value as determined in good faith by the Board of Directors of the
Fund.
B. Security Transactions and Investment Income:
Security transactions are recorded as of the trade date.
Dividend income is recorded on the ex-dividend date.
Realized gains and losses from investments sold are determined on the basis
of identified cost for accounting and tax purposes.
F-14
<PAGE> 68
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
3. RELATED PARTY TRANSACTIONS
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders are deducted on each monthly date from
the cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for 1994 aggregated $166,181.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent of aggregate
average daily net assets. As investment adviser to the Fund, it receives amounts
paid by the Fund for those services. MONY America is the legal holder of the
assets held by the Variable Account.
4. INVESTMENTS
Investments in MONY Series Fund, Inc. at cost, at December 31, 1994 consist
of the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO TOTAL
--------- --------- ------------ --------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of year:
Shares.............................. 20,289 33,717 17,373 10,116 65,849 101,941 249,285
Amount.............................. $ 409,120 $ 496,991 $178,518 $ 111,607 $ 839,570 $ 101,941 $2,137,747
Shares acquired:
Shares.............................. 3,244 3,211 2,132 664 9,691 94,970 113,912
Amount.............................. $ 67,966 $ 53,649 $ 22,175 $ 7,575 $ 130,213 $ 94,970 $ 376,548
Shares received for reinvestment of
dividends:
Shares.............................. 443 2,103 1,016 718 2,206 6,478 12,964
Amount.............................. $ 9,113 $ 32,658 $ 9,905 $ 7,512 $ 29,983 $ 6,478 $ 95,649
Shares redeemed:
Shares.............................. 7,093 5,190 3,032 1,819 14,081 21,102 52,317
Amount.............................. $ 138,804 $ 74,571 $ 30,740 $ 19,252 $ 172,147 $ 21,102 $ 456,616
--------- --------- ------------ --------- ----------- --------- ----------
Net change:
Shares.............................. (3,406) 124 116 (437) (2,184) 80,346 74,559
Amount.............................. $ (61,725) $ 11,736 $ 1,340 $ (4,165) $ (11,951) $ 80,346 $ 15,581
--------- --------- ------------ --------- ----------- --------- ----------
Shares end of year:
Shares.............................. 16,883 33,841 17,489 9,679 63,665 182,287 323,844
Amount.............................. $ 347,395 $ 508,727 $179,858 $ 107,442 $ 827,619 $ 182,287 $2,153,328
======== ======== ========== ======== ======== ======== =========
</TABLE>
F-15
<PAGE> 69
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America and the
Contractholders of MONY America Variable Account L:
We have audited the accompanying statements of operations of Mony America
Variable Account L (comprising, respectively, the Equity Growth, Equity Income,
Intermediate Term Bond, Long Term Bond, Diversified and Money Market
Subaccounts) for the year ended December 31, 1993. This financial statement is
the responsibility of MONY's management. Our responsibility is to express an
opinion on this financial statement based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the statements of operations are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the statements of operations. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the statements
of operations. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the statements of operations referred to above present fairly,
in all material respects, the results of operations of each of the respective
subaccounts constituting MONY America Variable Account L for the year ended
December 31, 1993 in conformity with generally accepted accounting principles.
COOPERS & LYBRAND
New York, New York
February 14, 1994.
F-16
<PAGE> 70
MONY AMERICA VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT TOTAL
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Dividend income................ $ 17,348 $ 41,503 $ 10,338 $ 6,985 $ 34,959 $ 3,363 $114,496
Mortality and expense risk
charges (Note 3)............. (2,399) (3,155) (1,124) (738) (5,307) (733) (13,456)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net investment income.......... 14,949 38,348 9,214 6,247 29,652 2,630 101,040
---------- ---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gain on
investments (Note 2):
Proceeds from sales.......... 238,142 95,497 35,719 21,595 248,207 156,009 795,169
Cost of shares sold.......... 199,921 84,777 32,502 18,600 234,438 156,009 726,247
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net realized gain on
investments.................. 38,221 10,720 3,217 2,995 13,769 0 68,922
Net increase (decrease) in
unrealized appreciation of
investments.................. (21,380) 16,685 669 6,270 43,284 0 45,528
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized
gain on investments.......... 16,841 27,405 3,886 9,265 57,053 0 114,450
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net increase in net assets
resulting from operations.... $ 31,790 $ 65,753 $ 13,100 $ 15,512 $ 86,705 $ 2,630 $215,490
========== ========== ========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements.
F-17
<PAGE> 71
MONY AMERICA VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS:
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the Investment
Company Act of 1940 (the "1940 Act"). The Variable Account holds assets that are
segregated from all of MONY America's other assets and, at present, is used only
to support Flexible Premium Variable Life Insurance Policies. These policies are
issued by MONY America, which is a wholly-owned subsidiary of The Mutual Life
Insurance Company of New York ("MONY"). MONY America is currently taxed as a
life insurance company and will include the Variable Account's operations in its
tax return. MONY America does not expect based on current tax law, to incur any
income tax burden upon the earnings or realized capital gains attributable to
the Variable Account. Based on this expectation, no charges are currently being
deducted from the Variable Account for Federal income tax purposes.
There are currently six subaccounts within the Variable Account, each invests
only in a corresponding portfolio of the MONY Series Fund, Inc. (the "Fund").
The Fund is registered under the 1940 Act as an open-end, diversified,
management investment company.
2. SIGNIFICANT ACCOUNTING POLICIES:
A. INVESTMENTS:
The investment in shares of the Fund is stated at the net asset values of the
Fund. The Fund's net asset values are based upon market valuations, as described
below, of the securities held in each of the corresponding portfolios.
Portfolio Valuations:
The Portfolios value all short-term securities at amortized cost. The amortized
cost of a security is determined by valuing it at original cost and thereafter
amortizing any discount or premium at a constant rate until maturity.
Common stocks traded on national securities exchanges are valued at the last
sales price as of the close of the New York Stock Exchange or at the last bid
price for over-the-counter securities.
Bonds are valued at the last available price provided by an independent pricing
service for securities traded on a national securities exchange. Bonds that are
listed on a national securities exchange but are not traded and bonds that are
regularly traded in the over-the-counter market are valued at the mean of the
last available bid and asked prices.
All other securities, including any restricted securities, will be valued at
their fair value as determined in good faith by the Board of Directors of the
Fund.
B. SECURITY TRANSACTIONS AND INVESTMENT INCOME:
Security transactions are recorded as of the trade date.
Dividend income is recorded on the ex-dividend date. Income from other
investments is accrued as earned.
Realized gains and losses from investments sold are determined on the basis of
first-in, first-out for accounting and tax purposes.
F-18
<PAGE> 72
MONY AMERICA VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
3. RELATED PARTY TRANSACTIONS:
Policy premiums received from MONY America by the Variable Account represent
gross policy premiums recorded by MONY America less deductions retained as
compensation for certain sales distribution expenses and premium taxes.
The cost of insurance, administration charges, and, if applicable, the cost of
any optional benefits added by riders are deducted on each monthly date from the
cash value of the contract to compensate MONY America. These deductions are
treated as contractholder redemptions by the Variable Account. The amount
deducted for 1993 aggregated $190,186.
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of .60 percent of aggregate
average daily net assets. As investment adviser to the Fund, it receives amounts
paid by the Fund for those services. MONY America is the legal holder of the
assets held by the Variable Account.
4. INVESTMENTS:
Investments in MONY Series Fund, Inc. at cost, at December 31, 1993, consist of
the following:
<TABLE>
<CAPTION>
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO TOTAL
---------- ---------- ------------ --------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares............................ 20,759 32,824 17,967 10,616 72,208 108,045 262,419
Amount............................ $376,290 $470,445 $182,193 $114,773 $908,575 $108,045 $2,160,321
Shares acquired:
Shares............................ 10,448 4,100 1,703 681 9,768 146,542 173,242
Amount............................ $215,403 $ 69,820 $ 18,489 $ 8,449 $130,474 $146,542 $ 589,177
Shares received for reinvestment of
dividends:
Shares............................ 838 2,526 984 580 2,595 3,363 10,886
Amount............................ $ 17,348 $ 41,503 $ 10,338 $ 6,985 $ 34,959 $ 3,363 $ 114,496
Shares redeemed:
Shares............................ 11,756 5,733 3,281 1,761 18,722 156,009 197,262
Amount............................ $199,921 $ 84,777 $ 32,502 $ 18,600 $234,438 $156,009 $ 726,247
--------- --------- ---------- -------- ---------- --------- ----------
Net change:
Shares............................ (470) 893 (594) (500) (6,359) (6,104) (13,134)
Amount............................ $ 32,830 $ 26,546 $ (3,675) $ (3,166) $(69,005) $ (6,104) $ (22,574)
--------- --------- ---------- -------- ---------- --------- ----------
Shares end of year:
Shares............................ 20,289 33,717 17,373 10,116 65,849 101,941 249,285
Amount............................ $409,120 $496,991 $178,518 $111,607 $839,570 $101,941 $2,137,747
========= ========= ========== ======== ========== ========= =========
</TABLE>
F-19
<PAGE> 73
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
MONY Life Insurance Company of America:
We have audited the accompanying balance sheets of MONY Life Insurance
Company of America as of December 31, 1995 and 1994, and the related statements
of operations, capital and surplus, and cash flows for the years then ended.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of MONY Life Insurance Company
of America as of December 31, 1995 and 1994, and the results of its operations
and its cash flows for the years then ended in conformity with accounting
practices prescribed or permitted by the Insurance Department of the State of
Arizona, which are considered generally accepted accounting principles for stock
life insurance subsidiaries of mutual life insurance companies.
Our audits were conducted for the purpose of expressing an opinion on the
financial statements taken as a whole. The Supplemental Schedule of Selected
Financial Data is presented to comply with the NAIC's Annual Statement
Instructions and is not a required part of the basic financial statements. The
Supplemental Schedule of Selected Financial Data has been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, is fairly stated, in all material respects, in relation to the
basic financial statements taken as a whole.
New York, New York
February 21, 1996
F-20
<PAGE> 74
MONY LIFE INSURANCE COMPANY OF AMERICA
BALANCE SHEETS
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------------
1995 1994
---------- ----------
(IN THOUSANDS)
<S> <C> <C>
ASSETS
Cash.................................................................. $ 3,663 $ 10,394
Investments:
Short-term investments.............................................. 121,499 68,268
Bonds............................................................... 1,017,646 992,054
Common stocks....................................................... 690 300
Mortgage loans...................................................... 173,154 175,708
Real estate......................................................... 58,375 69,893
Policy loans........................................................ 38,124 32,364
Other invested assets............................................... 7,953 7,293
Investment income due and accrued..................................... 21,383 21,898
Other assets.......................................................... 9,777 16,997
Separate account assets............................................... 1,685,770 998,100
--------- ---------
Total assets................................................ $3,138,034 $2,393,269
========= =========
POLICY RESERVES, LIABILITIES, CAPITAL AND SURPLUS
Policy reserves:
Life insurance and annuity reserves................................. $1,319,777 $1,289,343
Deposits left with the Company...................................... 23,287 15,088
Liabilities:
Policy claims in process of settlement.............................. 6,531 3,255
Taxes accrued....................................................... 16,965 7,548
Other liabilities................................................... 13,979 2,557
Transfers from separate accounts.................................... (65,082) (48,616)
Separate account liabilities........................................ 1,685,770 998,100
Interest maintenance reserve........................................ 3,138 3,179
Investment reserves................................................. 4,000 4,000
Asset valuation reserve............................................. 14,039 13,900
--------- ---------
Total policy reserves and liabilities....................... 3,022,404 2,288,354
Capital and surplus:
Capital stock, $1.00 par value; authorized, 5,000,000 shares issued
and outstanding 2,500,000 shares................................. 2,500 2,500
Additional paid-in capital.......................................... 133,500 123,500
Unassigned funds.................................................... (20,370) (21,085)
--------- ---------
Total capital and surplus................................... 115,630 104,915
--------- ---------
Total policy reserves, liabilities, capital and surplus..... $3,138,034 $2,393,269
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-21
<PAGE> 75
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
---------------------
1995 1994
-------- --------
(IN THOUSANDS)
<S> <C> <C>
Premiums, annuity considerations and fund deposits.............................. $607,099 $500,329
Net investment income........................................................... 104,923 96,287
Other income (net).............................................................. 2,557 23
-------- --------
714,579 596,639
Policyholder benefits........................................................... 309,335 246,105
Change in policy and contract reserves.......................................... 38,633 42,117
Commissions..................................................................... 32,257 24,682
Operating expenses.............................................................. 44,713 34,451
Transfer to separate accounts................................................... 275,600 237,588
-------- --------
700,538 584,943
Net gain from operations before federal income taxes............................ 14,041 11,696
Federal income taxes............................................................ 7,984 3,241
-------- --------
Net gain from operations........................................................ 6,057 8,455
Net realized capital losses (See Note 4)...................................... (1,410) (2,344)
-------- --------
Net Income...................................................................... $ 4,647 $ 6,111
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-22
<PAGE> 76
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CAPITAL AND SURPLUS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
-----------------------
1995 1994
-------- --------
(IN THOUSANDS)
<S> <C> <C>
Capital and Surplus, beginning of year............................... $104,915 $102,233
-------- --------
Net income........................................................... 4,647 6,111
Change in net unrealized capital losses.............................. (3,846) (13,043)
Change in non-admitted assets........................................ 53 311
Change in asset valuation reserve.................................... (139) (697)
Change in investment reserves........................................ -- 10,000
Increase in paid-in capital.......................................... 10,000 --
-------- --------
Net change in capital and surplus for the year....................... 10,715 2,682
-------- --------
Capital and Surplus, end of year..................................... $115,630 $104,915
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-23
<PAGE> 77
MONY LIFE INSURANCE COMPANY OF AMERICA
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
DECEMBER 31,
-------------------------
1995 1994
--------- ---------
(IN THOUSANDS)
<S> <C> <C>
CASH FLOW PROVIDED FROM OPERATIONS:
Premiums, annuity considerations and fund deposits............... $ 607,410 $ 500,312
Investment income net of investment expenses..................... 107,636 100,491
Other income..................................................... 2,555 --
Net change in policy loans....................................... (5,761) (1,829)
Policy benefits paid............................................. (307,107) (241,776)
Transfers to separate accounts................................... (292,066) (250,360)
Commissions, other expenses and taxes paid....................... (76,337) (57,174)
--------- ---------
Net cash from operations................................. 36,330 49,664
--------- ---------
PROCEEDS FROM INVESTMENTS SOLD, MATURED OR REPAID:
Bonds............................................................ 148,517 317,540
Stocks........................................................... 5 2,524
Mortgage loans................................................... 20,465 47,899
Real estate...................................................... 19,751 6,826
Other invested assets............................................ 162 382
--------- ---------
Total investment proceeds................................ 188,900 375,171
--------- ---------
OTHER CASH PROVIDED:
Increase in paid in capital...................................... 10,000 --
Other sources.................................................... 18,693 303
--------- ---------
Total cash provided...................................... 253,923 425,138
--------- ---------
CASH APPLIED:
Cost of investments acquired:
Bonds......................................................... 177,057 328,444
Stocks........................................................ 400 442
Mortgage loans................................................ 23,813 24,689
Real estate................................................... 5,530 5,276
Other invested assets......................................... 354 393
--------- ---------
Total investments acquired............................... 207,154 359,244
--------- ---------
Other cash applied............................................... 269 24,121
--------- ---------
Total cash applied....................................... 207,423 383,365
--------- ---------
Net change in cash and short-term investments.................... 46,500 41,773
Cash and short-term investments, beginning of year................. 78,662 36,889
--------- ---------
Cash and short-term investments, end of year....................... $ 125,162 $ 78,662
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-24
<PAGE> 78
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations
MONY Life Insurance Company of America (the "Company"), an Arizona
corporation, is a wholly owned subsidiary of The Mutual Life Insurance Company
of New York ("MONY"), a mutual life insurance company. The Company's primary
business is to provide interest-sensitive life insurance and asset accumulation
products to business owners, growing families, and pre-retirees. The Company's
insurance and financial products are marketed and distributed directly to
individuals primarily through MONY's career agency sales force. These products
are sold throughout the United States (except New York) and Puerto Rico.
Basis of Presentation
The Company's financial statements have been prepared on the basis of
accounting practices and procedures prescribed or permitted by the Insurance
Department of the State of Arizona, which are currently considered to be
generally accepted accounting principals ("GAAP") for stock life insurance
subsidiaries (domiciled in Arizona) of mutual life insurance companies (see Note
13). The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
The following is a description of the principal accounting practices and
procedures:
a. Premiums are included in revenue over the premium payment periods
of the related policies. Annuity considerations and fund deposits are
included in revenue as received.
Commissions and other costs related to issuance, maintenance and
settlement of policies are charged to operations in the year incurred.
b. Short-term investments are carried at cost and consist of
securities with maturities of three months or less. Bonds not backed by
other loans, which are eligible for amortization under rules promulgated by
the National Association of Insurance Commissioners ("NAIC"), are carried
at amortized cost, while all other bonds are carried at values adopted by
the NAIC, which approximate fair market value. Loan backed bonds and
structured securities are valued at amortized cost using the effective
interest method considering anticipated prepayments at the date of
purchase; significant changes in the estimated cash flows from the original
purchase assumptions are accounted for using the retrospective method.
Common stocks are carried at market value. Preferred stocks are carried at
cost. Policy loans are carried at their unpaid balances.
Mortgage loans other than those in process of foreclosure are carried
at their unpaid balances adjusted for unamortized discount. Real estate
owned for investment is carried at depreciated cost, less encumbrances.
There were no encumbrances in 1995 or in 1994. Joint venture partnerships
in real estate are included in other invested assets and are carried
principally at their equity value. Other investments are generally carried
at cost.
Real estate acquired through foreclosure is carried at the lower of
cost or the estimated fair value at the time of foreclosure, less
cumulative depreciation and encumbrances. Mortgage loans in process of
foreclosure are also carried at the lower of cost or the estimated fair
value. Fair value is determined by using the estimated discounted cash
flows expected from the underlying real estate properties. These projected
cash flows are based on estimates regarding future operating expenses,
lease rates, occupancy levels and investors' targeted yields.
The Company provides, through a direct charge to surplus, an
investment valuation reserve for permanent impairment of real estate
investments, joint venture partnerships in real estate, mortgage loans
F-25
<PAGE> 79
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
delinquent for more than 60 days and restructured mortgage loans. This
reserve reflects, in part, the excess of the carrying value of such assets
over the estimated undiscounted cash flows expected from the underlying
real estate properties. These projected cash flows are based on estimates
similar to those described in the preceding paragraph. As of December 31,
1995 and 1994, the Company's investment reserve for its mortgage loan and
real estate investments was $4 million.
c. Realized investment gains and losses (net of tax) for bonds and
mortgage loans resulting from changes in interest rates are deferred and
credited or charged to the Interest Maintenance Reserve ("IMR"). These
amounts are amortized into net income over the remaining years to expected
maturity of the assets sold. Unrealized investment gains and losses are
recorded directly to surplus.
The Asset Valuation Reserve ("AVR") is based upon a formula prescribed
by the NAIC and functions as a reserve for potential non-interest-related
investment losses. In addition, realized investment gains and losses (not
subject to the IMR) and unrealized gains and losses result in offsetting
increases and decreases in the AVR. These changes to AVR are recorded
directly to surplus.
d. Policy reserves for deferred annuity contracts are computed by the
net level premium method and the Commissioners' Annuity Reserve Valuation
Method by using the 1971 IAM Table for contracts issued before 1984 and the
1983 Table A for contracts issued since 1983 and permitted statutory
interest rates. Policy reserves for universal life and single premium whole
life contracts are computed by using the Commissioners' Reserve Valuation
Method and by using the 1958 and 1980 CSO Tables, and permitted statutory
interest rates.
e. Certain assets designated as "non-admitted" assets (principally
miscellaneous receivables) are excluded from the balance sheets.
f. Separate account assets and liabilities represent segregated funds
administered and invested by the Company for the benefit of certain
contractholders. Assets consist of securities reported at market value.
Premiums, benefits and expenses of the separate accounts are included in
the Company's statements of operations.
g. No deferred taxes are recognized for differences that exist between
financial reporting and taxable income.
h. The Company uses the constant-yield method of depreciation for
substantially all investment real estate and real estate joint venture
partnerships acquired prior to January 1, 1991. Acquisitions subsequent to
January 1, 1991 and foreclosed real estate are depreciated on the straight
line method. Real estate assets and improvements are generally depreciated
over ten to forty year periods and leasehold improvements over the lives of
the leases. Depreciation expense related to investments in real estate was
$1.7 million and $1.4 million in 1995 and 1994, respectively; accumulated
depreciation was $4.6 million and $4.0 at December 31, 1995 and 1994,
respectively.
i. Certain amounts for 1994 have been reclassified to conform to the
1995 presentation.
2. CAPITAL AND SURPLUS
MONY guaranteed to the states who requested it, pursuant to conditions
imposed by such states as a prerequisite for the licensing of new subsidiaries,
that the Company's capital and surplus would be maintained at a level at least
equivalent to the minimum capital and surplus required for admission to conduct
business in those states. As of December 31, 1995 and 1994, this guarantee was
outstanding in the state of New Jersey.
F-26
<PAGE> 80
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. FEDERAL INCOME TAXES
The Company is included in the consolidated federal income tax return with
its parent, The Mutual Life Insurance Company of New York, and the parent's
non-life affiliates. The allocation of federal income taxes is based upon
separate return calculations with current credit for net losses. The Company's
federal income tax returns for years through 1989 have been examined with no
proposed material adjustments. In the opinion of management, adequate provision
has been made for any additional taxes which may become due with respect to open
years.
Pre-tax operating gains and pre-tax realized gains, as reported in the
accompanying statements of operations, differ from taxable income reported for
tax purposes. Significant differences include the deferral and amortization of
policy acquisition costs for tax purposes, the difference between statutory and
tax reserves, the taxable portion of the Company's depreciation expense and
related recapture, utilization of capital loss carryovers, capital gains
deferred to the IMR, alternative minimum tax preference items and equity in
partnerships and joint ventures.
4. CAPITAL GAINS/(LOSSES)
The Company realized net capital losses (after-tax and IMR) of $1.4 million
in 1995 and $2.3 million in 1994 as follows:
<TABLE>
<CAPTION>
REALIZED CAPITAL GAINS/(LOSSES) 1995 1994
------------------------------------------------------------- ----- -----
(IN MILLIONS)
<S> <C> <C>
Bonds and stocks............................................. $ 0.2 $(4.3)
Real estate and mortgage loans............................... (0.4) (0.8)
----- -----
(0.2) (5.1)
Taxes........................................................ (0.7) 0.0
Transferred to IMR, net of taxes............................. (0.5) 2.8
----- -----
Net realized capital losses.................................. $(1.4) $(2.3)
===== =====
</TABLE>
During 1995 and 1994, realized capital gains/(losses) resulting from
changes in interest rates on fixed income securities of $0.5 million (net of
$0.2 million tax) and ($2.8) million (net of ($1.5) million tax), respectively,
were transferred to the Company's IMR for future amortization into net income.
The Company incurred net unrealized capital losses of $3.8 million in 1995
and $13.0 million in 1994. The 1995 and 1994 unrealized losses include
writedowns of approximately $1.2 million and $13.8 million, respectively, on
real estate acquired through foreclosure and mortgage loans in process of
foreclosure. These losses are detailed by asset type in the table below.
<TABLE>
<CAPTION>
UNREALIZED CAPITAL GAINS/(LOSSES) 1995 1994
---------------------------------------------------------- ----- ------
(IN MILLIONS)
<S> <C> <C>
Bonds and stocks.......................................... $(2.6) $ 0.6
Real estate and mortgage loans............................ (1.2) (13.8)
Other investments......................................... 0.0 0.2
----- ------
Total unrealized capital losses........................... $(3.8) $(13.0)
===== ======
</TABLE>
F-27
<PAGE> 81
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. FIXED INCOME SECURITIES
FIXED INCOME SECURITIES BY INVESTMENT TYPE
The amortized cost and estimated fair value (see note 8) of investments in
fixed income securities which include short-term investments, bonds and
preferred stocks as of December 31, 1995 and December 31, 1994 are as follows:
<TABLE>
<CAPTION>
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
------------------- ------------ ------------ -------------------
1995 1994 1995 1994 1995 1994 1995 1994
-------- -------- ----- ---- ---- ----- -------- --------
(DOLLARS IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
U.S. Treasury & Other
Agencies...................... $ 21.0 $ 21.0 $ 0.1 $0.0 $0.1 $ 1.0 $ 21.0 $ 20.0
Collateralized Mortgage
Obligations:
Government Agency Backed...... 128.8 111.8 2.9 0.0 0.2 10.8 131.5 101.0
Non-Agency Backed............. 36.9 22.7 2.5 0.0 0.0 1.6 39.4 21.1
Other asset backed securities:
Government Agency Backed...... 0.3 0.4 0.0 0.0 0.0 0.0 0.3 0.4
Non-Agency Backed............. 78.5 60.1 2.5 0.7 0.6 2.1 80.4 58.7
Foreign governments............. 0.0 5.0 0.0 0.0 0.0 0.5 0.0 4.5
Utilities....................... 127.1 135.5 4.9 1.1 0.2 7.6 131.8 129.0
Corporate bonds................. 625.0 635.5 25.7 3.4 3.2 35.6 647.5 603.3
-------- -------- ----- ---- ---- ----- -------- --------
Total bonds........... 1,017.6 992.0 38.6 5.2 4.3 59.2 1,051.9 938.0
Commercial paper................ 121.5 68.3 0.0 0.0 0.0 0.0 121.5 68.3
-------- -------- ----- ---- ---- ----- -------- --------
Total................. $1,139.1 $1,060.3 $38.6 $5.2 $4.3 $59.2 $1,173.4 $1,006.3
======== ======== ===== ==== ==== ===== ======== ========
</TABLE>
Amortized cost represents the principal amount of the fixed income
securities adjusted by unamortized premium or discount and reduced by writedowns
of $4.4 million and $1.8 million at December 31, 1995 and 1994, respectively, as
required by the NAIC for securities which are in or near default.
At December 31, 1995, 78% of the Company's Collateralized Mortgage
Obligation (CMO) portfolio was held in U.S. government and government
agency-backed securities. The remainder of the CMO portfolio consisted of NAIC
category 1 investment grade securities.
MATURITIES OF FIXED INCOME SECURITIES
The amortized cost and estimated fair value of fixed income securities by
maturity date (excluding scheduled sinking funds) as of December 31, 1995 are as
follows:
<TABLE>
<CAPTION>
ESTIMATED
AMORTIZED FAIR
COST VALUE
--------- ---------
(IN MILLIONS)
<S> <C> <C>
Due in one year or less........................................... $ 170.4 $ 171.6
Due after one year through five years............................. 358.8 367.0
Due after five years through ten years............................ 380.9 397.9
Due after ten years............................................... 229.0 236.9
--------- ---------
$1,139.1 $ 1,173.4
========= =========
</TABLE>
F-28
<PAGE> 82
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. FIXED INCOME SECURITIES (CONTINUED)
Expected maturities may differ from contractual maturities because
borrowers may have the right to call or prepay obligations with or without call
or prepayment penalties.
Proceeds from sales of investments in debt securities during 1995 and 1994
were $40 million and $241 million, respectively. Gross gains of $0.6 million in
1995 and $0 million in 1994, and gross losses of $1.4 million in 1995 and $5.5
million in 1994 were realized on these sales.
6. CONCENTRATION OF CREDIT RISK
As of December 31, 1995 and 1994, the Company had no single investment
(excluding U.S. Treasury securities) exceeding 1.3% and 1.1%, respectively, of
total general account assets.
The bond portfolio is diversified by industry type. The industries
comprising more than 10% of the carrying value of the bond portfolio at December
31, 1995 are Government and Agencies of $150 million (14.8%), Public Utilities
of $127 million (12.5%), Non-Government -- Asset/Mortgage Backed of $116 million
(11.4%), Financial Services of $108 million (10.6%), Consumer Goods and Services
of $105 million (10.3%) and Other Manufacturing of $102 million (10.0%). At
December 31, 1994, the industries comprising more than 10% of the carrying value
of the bond portfolio were Government and Agencies of $138 million (13.9%),
Public Utilities of $135 million (13.6%), Other Manufacturing of $110 million
(11.1%) and Consumer Goods and Services of $104 million (10.5%).
The Company holds below investment grade bonds of $84 million at December
31, 1995. Below investment grade bonds are defined as those securities rated in
categories 3 through 6 by the NAIC, which are approximately equivalent to bonds
rated below BBB by rating agencies. These bonds consist mostly of privately
issued bonds, which are monitored by the Company through extensive internal
analysis of the financial condition of the borrowers, and which include
protective debt covenants. Of these bonds, $60 million are in category 3, which
is considered to be medium quality by the NAIC. At December 31, 1994, the
Company's investments in below investment grade bonds were $70 million.
The Company has investments in commercial and agricultural mortgage loans
and real estate (including joint venture partnerships). Approximately 48.5% of
the Company's real estate and mortgage portfolio is invested in agricultural
properties. The locations of property collateralizing mortgage loans and real
estate investment carrying values (in millions) at December 31, 1995 and 1994
are as follows:
<TABLE>
<CAPTION>
1955 1994
----------- -----------
GEOGRAPHIC REGION $ % $ %
------------------------------------------------------------- --- ----- --- -----
<S> <C> <C> <C> <C>
West......................................................... 73 30.5 71 28.1
Mountain..................................................... 52 21.7 53 20.9
Southeast.................................................... 31 13.1 41 16.2
Midwest...................................................... 30 12.7 34 13.6
Northeast.................................................... 30 12.6 37 14.5
Southwest.................................................... 23 9.4 17 6.7
--- ----- --- -----
Total.............................................. 239 100.0 253 100.0
=== ===== === =====
</TABLE>
The states with the largest concentrations of mortgage loans and real
estate investments at December 31, 1995 are: California, $44 million (18.4%);
Texas, $23 million (9.4%); Arizona, $19 million (8.1%); New York, $19 million
(8.0%); Washington, $14 million (5.9%); Illinois, $13 million (5.5%); Florida,
$12 million (5.0%); Idaho, $12 million (5.0%); and Oregon, $12 million (4.9%).
F-29
<PAGE> 83
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. MORTGAGE LOANS AND REAL ESTATE
The Company invests in mortgage loans collateralized by commercial and
agricultural real estate. Such mortgage loans consist primarily of first
mortgage liens on completed income producing properties or agricultural
properties. As of December 31, 1995, $60.7 million of mortgage loans have terms
that require amortization, and $112.4 million of loans require partial
amortization or are non-amortizing. Mortgage loans delinquent over 90 days or in
process of foreclosure were $0 million at December 31, 1995 and $2.3 million at
December 31, 1994. Properties acquired through foreclosure during the year
amounted to $4.8 million and $18.8 million in 1995 and 1994, respectively.
The Company has performing restructured mortgage loans of $15.1 million as
of December 31, 1995 and $10.9 million as of December 31, 1994. The new terms
typically defer a portion of contract interest payments to future periods.
Interest is recognized in income based on the modified rate of the loan.
Deferred interest, which is the difference between the original contractual rate
and the modified rate, is excluded from income. Gross interest income on
restructured loans that would have been recorded in accordance with the loans'
original terms was $1.5 million in 1995 and $1.1 million in 1994. Gross interest
income recognized in net income for the period from these loans was $1.0 million
in 1995 and $0.6 million in 1994. There are no commitments to lend additional
funds to any debtor involved in a restructuring.
Other invested assets of $8.0 and $7.3 million at December 31, 1995 and
1994, respectively, include, primarily, investments in real estate partnerships.
8. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents the carrying amounts and respective estimated
fair values of the Company's financial instruments at December 31, 1995. The
calculations of estimated fair values involve considerable judgement.
Accordingly, these estimates of fair value are not necessarily indicative of the
values that could be negotiated in an actual sale.
<TABLE>
<CAPTION>
ESTIMATED
CARRYING FAIR
AMOUNT VALUE
-------- ----------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Fixed Income Securities...................................... 1,017.6 1,051.9
Separate Account Assets...................................... 1,685.8 1,685.8
LIABILITIES
Investment-type contracts.................................... 847.5 859.7
Separate Account Liabilities................................. 1,685.8 1,685.8
</TABLE>
The estimated fair values of cash, short term investments, equity
securities and mortgage loans approximate their carrying amounts.
The methods and assumptions utilized in estimating these fair values of
financial instruments are summarized as follows:
FIXED INCOME SECURITIES (SEE NOTE 5)
The estimated fair values of fixed income securities are based upon quoted
market prices, where available. The fair values of fixed income securities not
actively traded and other non-publicly traded securities are estimated using
values obtained from independent pricing services or, in the case of private
placements, by discounting expected future cash flows using a current market
interest rate commensurate with the credit quality and term of the investments.
F-30
<PAGE> 84
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
8. ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)
MORTGAGE LOANS
The fair value of mortgage loans is estimated by discounting expected
future cash flows, using current interest rates for similar loans to borrowers
with similar credit risk. Loans with similar characteristics are aggregated for
purposes of the calculations.
POLICY LOANS
Policy loans are an integral component of insurance contracts and have no
maturity dates. Management has determined that it is not practicable to estimate
the fair value of policy loans.
SEPARATE ACCOUNT
The estimated fair value of separate account assets and liabilities
approximates their respective carrying amounts.
INVESTMENT-TYPE CONTRACT LIABILITIES
The fair values of the Company's liabilities under investment-type
contracts are estimated by discounting expected cash outflows using interest
rates currently offered for similar contracts with maturities consistent with
those remaining for the contracts being valued, where appropriate. The fair
values of other investment-type contracts are based on estimates of the value of
payments available upon full surrender.
9. RESERVES
The withdrawal characteristics of the Company's annuity actuarial reserves
and deposit liabilities as of December 31, 1995 were as follows:
<TABLE>
<CAPTION>
RESERVES
-------------
(IN MILLIONS)
<S> <C>
Not subject to discretionary withdrawal provision...................... $ 76
Subject to discretionary withdrawal -- with adjustment:
- at book value less surrender charges............................... 240
- at market value.................................................... 1,609
------
Subtotal..................................................... 1,849
Subject to discretionary withdrawal -- without adjustment:
- at book value (minimal or no charge or adjustment)................. 554
------
Total annuity actuarial reserves and deposit liabilities
(gross).................................................... $ 2,479
======
</TABLE>
The amounts above are included in the Company's balance sheet as life
insurance and annuity reserves ($869) million and separate account liabilities
($1,610) million.
10. REINSURANCE
Life insurance business is ceded on a yearly renewable term basis to MONY
and other insurance companies under various reinsurance contracts. The Company's
practice is to retain no more than $0.5 million of risk on any one person. The
total amount of reinsured life insurance in force on this basis was $2.2 billion
and $2.3 billion at December 31, 1995 and 1994, respectively. Premiums ceded
under these contracts were $12.3 million and $11.7 million; benefit payments
recovered were $23.3 million and $12.3 million; policy
F-31
<PAGE> 85
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
10. REINSURANCE (CONTINUED)
reserve credits recorded were $9.7 million and $9.2 million; and recoverable
amounts on paid and unpaid losses were $5.1 million and $1.6 million in 1995 and
1994, respectively.
The Company is contingently liable with respect to ceded insurance should
any reinsurer be unable to meet its obligations under these agreements.
11. COMMITMENTS AND CONTINGENCIES
The Company is a defendant in various legal actions arising primarily from
its investment and insurance operations. In addition, insurance companies are
subject to assessments, up to statutory limits, by state guaranty funds for
losses of policyholders of insolvent insurance companies. In the opinion of
management, the outcome of the legal proceedings and assessments will not have a
material adverse effect on the financial position and the results of operations
of the Company.
12. RELATED PARTY TRANSACTIONS
At December 31, 1995 and 1994, approximately 30% and 35%, respectively, of
the Company's investments in mortgages were held through joint participation
with MONY. In addition, approximately 82% and 81% of the Company's real estate
and joint venture investments were held through joint participation with MONY at
December 31, 1995 and 1994, respectively.
During 1994, the Company sold commercial mortgages with a book value of
approximately $5 million to MONY for consideration of approximately $4 million
based on the estimated fair value of the assets. The Company received capital
contributions of $10 million from MONY in 1995.
The Company and MONY are parties to an agreement dated February 28, 1995
whereby MONY agrees to reimburse the Company to the extent that the Company's
recognized loss as a result of mortgage loan default or foreclosure or
subsequent sale of the underlying collateral exceeds the 75% loan to value ratio
for each such mortgage loan at origination. Pursuant to the agreement, the
Company received payments from MONY totaling $2.1 million in 1995.
13. ACCOUNTING DEVELOPMENTS
During 1993, the Financial Accounting Standards Board ("FASB") issued
Interpretation No. 40, "Applicability of Generally Accepted Accounting
Principles to Mutual Life Insurance and Other Enterprises." The Interpretation
requires mutual life insurance companies which issue financial statements
described as prepared "in conformity with generally accepted accounting
principles" to apply all applicable authoritative accounting pronouncements in
preparing those statements. The provisions of this Interpretation are effective
for fiscal years beginning after December 15, 1995. The Interpretation indicates
that financial statements of mutual life insurance companies which are prepared
on the basis of statutory accounting practices may no longer receive an
unqualified audit opinion stating that the financial statements have been
prepared in accordance with GAAP.
In January 1995, the FASB issued Statement of Financial Accounting
Standards No. 120, "Accounting and Reporting by Mutual Life Insurance
Enterprises and by Insurance Enterprises for Certain Long-Duration Participating
Contracts." This Statement extends the requirements of FASB Statements No. 60,
"Accounting and Reporting by Insurance Enterprises", No. 97, "Accounting and
Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for
Realized Gains and Losses from the Sale of Investments", and No. 113,
"Accounting and Reporting for Reinsurance of Short-Duration and Long-Duration
Contracts", to mutual life insurance enterprises. In 1995, the AICPA established
accounting for certain participating life insurance contracts of mutual life
insurance enterprises in its Statement of Position 95-1, "Accounting for
F-32
<PAGE> 86
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
13. ACCOUNTING DEVELOPMENTS (CONTINUED)
Certain Insurance Activities of Mutual Life Insurance Enterprises." FASB
Statement No. 120 and the AICPA Statement of Position are effective for fiscal
years beginning after December 15, 1995. The Company is currently evaluating the
impact of these accounting developments on its financial statements.
F-33
<PAGE> 87
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA
FOR THE YEAR ENDED DECEMBER 31, 1995
(AMOUNTS IN $ THOUSANDS)
The following is a summary of certain financial data from the Company's
Annual Statement included in other exhibits and schedules subjected to audit
procedures by independent accountants and utilized by the Company's actuaries in
the determination of reserves.
<TABLE>
<S> <C>
INVESTMENT INCOME EARNED
Government Bonds.............................................. 1,169
Other bonds (unaffiliated).................................... 76,939
Bonds of affiliates........................................... 0
Preferred stocks (unaffiliated)............................... 0
Preferred stocks of affiliates................................ 0
Common stocks (unaffiliated).................................. 0
Common stocks of affiliates................................... 0
Mortgage loans................................................ 14,867
Real estate................................................... 15,991
Premium notes, policy loans and liens......................... 2,847
Collateral loans.............................................. 0
Cash on hand and on deposit................................... 6
Short-term investments........................................ 6,637
Other Invested Assets......................................... 331
Derivative Instruments........................................ 0
Aggregate write-ins for investment income..................... 1,119
---------
Gross investment income.................................... 119,906
=========
REAL ESTATE OWNED -- BOOK VALUE LESS ENCUMBRANCES............... 58,375
MORTGAGE LOANS -- BOOK VALUE:
Farm mortgages................................................ 116,212
Residential mortgages......................................... 0
Commercial mortgages.......................................... 56,942
---------
Total mortgage loans....................................... 173,154
=========
MORTGAGE LOANS BY STANDING -- BOOK VALUE:
Good standing................................................. 158,052
Good standing with restructured terms......................... 15,102
Interest overdue more than three months, not in foreclosure... 0
Foreclosure in process........................................ 0
OTHER LONG TERM ASSETS -- STATEMENT VALUE....................... 45,555
COLLATERAL LOANS................................................ 0
BONDS AND STOCKS OF PARENTS, SUBSIDIARIES AND AFFILIATES -- BOOK
VALUE
Bonds......................................................... 0
Preferred Stocks.............................................. 0
Common Stocks................................................. 0
</TABLE>
F-34
<PAGE> 88
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA -- (CONTINUED)
<TABLE>
<S> <C>
BONDS AND SHORT-TERM INVESTMENTS BY CLASS AND
MATURITY:
BONDS BY MATURITY -- STATEMENT VALUE
Due within one year or less...................... 202,895
Over 1 year through 5 years...................... 467,791
Over 5 years through 10 years.................... 405,896
Over 10 years through 20 years................... 35,127
Over 20 years.................................... 27,436
---------
Total by Maturity.............................. 1,139,145
=========
BONDS BY CLASS -- STATEMENT VALUE
Class 1.......................................... 654,088
Class 2.......................................... 401,003
Class 3.......................................... 60,371
Class 4.......................................... 12,242
Class 5.......................................... 1,779
Class 6.......................................... 9,662
---------
Total by Class................................. 1,139,145
=========
TOTAL BONDS PUBLICLY TRADED........................... 652,479
TOTAL BONDS PRIVATELY PLACED.......................... 486,666
PREFERRED STOCKS -- STATEMENT VALUE................... 0
COMMON STOCKS -- MARKET VALUE......................... 690
SHORT TERM INVESTMENTS -- BOOK VALUE.................. 121,499
FINANCIAL OPTIONS OWNED -- STATEMENT VALUE............ 0
FINANCIAL OPTIONS WRITTEN AND IN FORCE -- STATEMENT
VALUE............................................... 0
FINANCIAL FUTURES CONTRACTS OPEN -- CURRENT PRICE..... 0
CASH ON HAND & ON DEPOSIT............................. 3,663
LIFE INSURANCE IN FORCE:
Industrial.......................................... 0
Ordinary............................................ 8,602,040
Credit Life......................................... 0
Group Life.......................................... 1,567,629
AMOUNT OF ACCIDENTAL DEATH INSURANCE IN FORCE UNDER
ORDINARY POLICIES................................... 138,196
LIFE INSURANCE POLICIES WITH DISABILITY PROVISIONS IN
FORCE:
Industrial.......................................... 0
Ordinary............................................ 2,927,376
Credit Life......................................... 0
Group Life.......................................... 212,113
</TABLE>
F-35
<PAGE> 89
MONY LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA -- (CONTINUED)
<TABLE>
<S> <C>
SUPPLEMENTARY CONTRACTS IN FORCE:
Ordinary -- Not Involving Life Contingencies
Amount on Deposit................................ 21,022
Income Payable................................... 939
Ordinary -- Involving Life Contingencies
Income Payable................................... 2,472
Group -- Not Involving Life Contingencies
Amount on Deposit................................ 0
Income Payable................................... 0
Group -- Involving Life Contingencies
Income Payable................................... 4
ANNUITIES:
Ordinary
Immediate -- Amount of Income Payable............ 0
Deferred -- Fully Paid Account Balance........... 0
Deferred -- Not Fully Paid -- Account Balance.... 0
Group
Amount of Income Payable......................... 0
Fully Paid Account Balance....................... 76,681
Not Fully Paid -- Account Balance................ 0
ACCIDENT AND HEALTH INSURANCE -- PREMIUMS IN FORCE:
Ordinary............................................ 0
Group............................................... 0
Credit.............................................. 0
DEPOSIT FUNDS AND DIVIDEND ACCUMULATIONS:
Deposit Funds -- Account Balance.................... 764,066
Dividend Accumulations -- Account Balance........... 0
CLAIM PAYMENTS 1995:
Group Accident and Health Year -- Ended December 31,
1995............................................. 0
1994............................................. 0
1993............................................. 0
Other Accident & Health
1995............................................. 0
1994............................................. 0
1993............................................. 0
Other Coverages that use developmental methods to
calculate claim reserves
1995............................................. 0
1994............................................. 0
1993............................................. 0
</TABLE>
F-36
<PAGE> 90
APPENDIX A
DEATH BENEFIT PERCENTAGE FOR
GUIDELINE PREMIUM/CASH VALUE CORRIDOR TEST
<TABLE>
<CAPTION>
ATTAINED AGE APPLICABLE PERCENTAGE
- -------------------------------------------------------------------------------------------------
<S> <C>
40 and Under................................................................ 150%
41.......................................................................... 143
42.......................................................................... 136
43.......................................................................... 129
44.......................................................................... 122
45.......................................................................... 115
46.......................................................................... 109
47.......................................................................... 103
48.......................................................................... 97
49.......................................................................... 91
50.......................................................................... 85
51.......................................................................... 78
52.......................................................................... 71
53.......................................................................... 64
54.......................................................................... 57
55.......................................................................... 50
56.......................................................................... 46
57.......................................................................... 42
58.......................................................................... 38
59.......................................................................... 34
60.......................................................................... 30
61.......................................................................... 28
62.......................................................................... 26
63.......................................................................... 24
64.......................................................................... 22
65.......................................................................... 20
66.......................................................................... 19
67.......................................................................... 18
68.......................................................................... 17
69.......................................................................... 16
70.......................................................................... 15
71.......................................................................... 13
72.......................................................................... 11
73.......................................................................... 09
74.......................................................................... 07
75-90....................................................................... 05
91.......................................................................... 04
92.......................................................................... 03
93.......................................................................... 02
94.......................................................................... 01
95.......................................................................... 00
</TABLE>
A-1
<PAGE> 91
APPENDIX B
ILLUSTRATIONS OF DEATH BENEFITS, ACCOUNT VALUES AND
SURRENDER VALUES, AND ACCUMULATED PREMIUMS
The following tables illustrate how the key financial elements of the
Policy work, specifically, how the death benefits, Fund Values and Surrender
Values could vary over an extended period of time. In addition, each table
compares these values with premiums paid accumulated with interest.
The Policies illustrated include the following:
<TABLE>
<CAPTION>
BENEFIT SPECIFIED SEE
SEX AGE SMOKER OPTION AMOUNT PAGE
- ------- --- ------------------------------ ------- -------- -----
<S> <C> <C> <C> <C> <C>
MALE 45 PREFERRED NON-smoker 1 $200,000 B- 4
Female 45 Preferred Non-smoker 1 $200,000 B-14
Male 45 Standard Smoker 1 $200,000 B-24
Male 45 Preferred Non-smoker 2 $200,000 B-34
Male 35 Preferred Non-smoker 1 $200,000 B-43
Male 55 Preferred Non-smoker 1 $200,000 B-53
</TABLE>
The tables show how death benefits, Fund Values and Surrender Values of a
hypothetical Policy could vary over an extended period of time if the
Subaccounts of the Variable Account had constant hypothetical gross annual
investment returns of 0%, 6% or 12% over the periods indicated in each table.
The values will differ from those shown in the tables if the annual investment
returns are not absolutely constant. That is, the death benefits, Fund Values
and Surrender Values will be different if the returns averaged 0%, 6% or 12%
over a period of years but went above or below those figures in individual
Policy years. These illustrations assume that no Policy Loan has been taken. The
amounts shown would differ if unisex rates were used.
The fourth column of each table shows what would happen if an amount equal
to the premiums (shown in the third column) were invested to earn interest,
after taxes, of 5% compounded annually. All premium payments are illustrated as
if they were made at the beginning of the year.
The amounts shown for death benefits, Fund Values and Surrender Values
sections reflect the fact the net investment return on the Policy is lower than
the gross investment return on the Subaccounts of the Variable Account. This
results from the charges levied against the Subaccounts of the Variable Account
(i.e., the mortality and expense risk charge) as well as the premium loads,
administrative charges and Fund Charges. The difference between the Fund Value
and the Surrender Value in the first 14 years is the Fund Charge.
The tables illustrate cost of insurance and expense charges at both current
rates (which are described under Cost Of Insurance, page 32.) and at the maximum
rates guaranteed in the Policies. The amounts shown at the end of each Policy
year reflect a daily charge against the Funds as well as those assessed against
the Subaccounts. These charges include the charge against the Subaccounts for
mortality and expense risks and the effect on each Subaccount's investment
experience of the charge to Portfolio assets for investment management and
direct expenses. The mortality and expense risk fee is .75% annually on a
guaranteed basis; illustrations showing current rates reflect a reduction of
.50% of the Account Value annually beginning after the tenth Policy Anniversary.
The tables also reflect a deduction for a daily investment advisory fee and
for other expenses of the Portfolio at a rate equivalent to an annual rate of
0.75% of the aggregate average daily net assets of the Portfolio. This
hypothetical rate is representative of the average maximum investment advisory
fee and other expenses of the Portfolios applicable to the Subaccounts of the
Variable Account. Actual fees and other expenses vary by Portfolio and may be
subject to agreements by the sponsor to waive or otherwise reimburse each
Portfolio for operating expenses which exceed certain limits. There can be no
assurance that the expense reimbursement arrangements will continue in the
future, and any unreimbursed expenses would be reflected in the values included
on the tables.
B-1
<PAGE> 92
The effect of these investment management, direct expenses and mortality
and expense risk charges on a 0% gross rate of return would result in a net rate
of return of -1.4916%, on 5% it would be 3.4711%, and on 10% it would be
8.4338%.
The tables assume the deduction of charges including administrative and
sales charges. For each age, there are tables for death benefit Options I and II
and each option is illustrated using current and guaranteed policy cost factors.
The tables reflect the fact that the Company does not currently make any charge
against the Variable Account for state or federal taxes. If such a charge is
made in the future, it will take a higher rate of return to produce after-tax
returns of 0%, 6% or 12%.
The Company will furnish, upon request, a comparable illustration based on
the age and sex of the proposed Insured, standard Premium Class assumptions and
an initial Specified Amount and Scheduled Premium Payments of the applicant's
choice. If a Policy is purchased, an individualized illustration will be
delivered reflecting the Scheduled Premium Payment chosen and the Insured's
actual risk class. After issuance, the Company will provide upon request an
illustration of future Policy benefits based on both guaranteed and current cost
factor assumptions and actual Account Value.
The following is the page of supplemental footnotes to each of the flexible
premium variable life to age 95 standard ledger statements which follow and
which begin on pages B-4, B-6, B-10, B-14, B-16, B-20, B-24, B-26, B-30, B-34,
B-36, B-39, B-43, B-45, B-49, B-53, B-55 and B-57.
THESE ILLUSTRATIONS ARE NOT VALID IN FLORIDA.
B-2
<PAGE> 93
STANDARD LEDGER STATEMENT--SUPPLEMENTAL FOOTNOTE PAGE
MONY EQUITYMASTER
FLEXIBLE PREMIUM VARIABLE LIFE TO AGE 95
MONY LIFE OF AMERICA
DECLARED PREMIUMS
This Policy has been tested for the possibility of classification as a
Modified Endowment. This test is not a guarantee that a policy will not be
classified as a Modified Endowment.
This illustration has been checked against Federal Tax Laws relating to the
definition of life insurance and is in compliance based on proposed premium
payments and coverages. Any decrease in specified amount and/or a change in
death benefit Option II to death benefit Option I and/or surrenders occurring in
the first 15 years may cause a taxable event. In addition, if the Policy is
defined as a Modified Endowment Contract, a loan, surrender, or assignment or
pledge (unless such assignment or pledge is for burial expenses and the maximum
death benefit is not in excess of $25,000) may be considered a Taxable
Distribution and a ten percent penalty may be added to any tax on the
Distribution. Please consult your tax advisor for advice.
Premiums are assumed to be paid at the beginning of the payment period.
Policy values and ages are shown as of the end of the Policy year and reflect
the effect of all loans and surrenders. The benefit payable at death, Fund Value
and Value Upon Surrender will differ if premiums are paid in different amounts,
frequencies, or not on the due date.
The Policy's Value Upon Surrender is net of any applicable surrender
charge.
Premiums less the following deductions are added to the Fund Value. (1) A
premium tax charge of 2.00% of gross premiums in all Policy years. (2) A sales
charge on the gross premiums. The sales charges equal 4% in Policy years 1-10,
2% in Policy years 11-20, and 0% in Policy years 21 and later. (3) A DAC tax
charge of 1.25% of gross premiums in all Policy years.
Those columns assuming Guaranteed Charges use the current Monthly Mortality
Charges, current Monthly Administrative Charges, current Charges for Mortality
and Expense Risks, current Charges for Rider Benefits, if any, and current
Premium Sales Charge ("Current Charges") for the first year as well as the
Assumed Hypothetical Gross Annual Investment Return indicated. Thereafter these
columns use Guaranteed Monthly Mortality Charges, current Monthly Administrative
Charges, Guaranteed Charges for Mortality and Expense Risks, Guaranteed Charges
for Rider Benefits if any, current Maximum Premium Sales Charge, and the Assumed
Hypothetical Gross Annual Investment Return indicated. Those columns assuming
Current Charges are based upon "Current Charges" and the Assumed Hypothetical
Gross Annual Investment Return indicated.
The Current Charges are declared by MONY Life of America, are guaranteed
for the first Policy year, and apply to policies issued as of the Preparation
Date shown. After the first Policy year, Current Charges are not guaranteed, and
may be changed at the discretion of MONY Life of America.
The difference between the Fund Value and the Value Upon Surrender is a
Fund Charge. A Fund Charge will apply during the first fourteen years from issue
or following a specified amount increase if the Policy is given up for its Value
Upon Surrender or is terminated, or if the specified amount is reduced. Any
applicable fund charge will be deducted from the Fund Value. Whenever there is a
partial surrender, the surrender amount and the surrender charge ($25.00 or 2%
of the amount surrendered, if less) could be deducted from the benefit payable
at death, and will be deducted from the Fund Value and the Value Upon Surrender.
A Policy loan will have a permanent effect on benefits under this Policy.
Loan interest at an annual rate of 5.4% will be charged in advance (equivalent
to 5.75% in arrears). Amounts borrowed will earn interest at an annual rate of
5.0%. This rate is determined by subtracting a margin of 0.75% from the loan
rate. This margin is designed to decrease by 0.5% in Policy years 11 and later,
but such decrease is not guaranteed. Hence amounts borrowed will earn interest
at a rate of 5.0% for Policy years 1 though 10 and 5.5% for Policy years 11 and
later. This decrease is based on current expectations as to mortality, expenses,
persistency and investment income. Adverse tax consequences could occur if a
Policy subject to loans is surrendered or permitted to lapse.
B-3
<PAGE> 94
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
1 0% GROSS
MALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 3,088.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
0.00% (- 1.49% NET) 0.00% (- 1.49% NET)
-------------------------------- --------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- ------ -------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 3,242 0 314 2,117 200,000 314 2,117 200,000
2 47 3,088 6,647 0 2,058 4,132 200,000 2,058 4,132 200,000
3 48 3,088 10,222 0 2,762 6,078 200,000 2,762 6,078 200,000
4 49 3,088 13,975 0 4,617 7,933 200,000 4,617 7,933 200,000
5 50 3,088 17,916 0 6,385 9,701 200,000 6,385 9,701 200,000
6 51 3,088 22,055 0 8,398 11,383 200,000 8,398 11,383 200,000
7 52 3,088 26,400 0 10,306 12,959 200,000 10,306 12,959 200,000
8 53 3,088 30,962 0 12,110 14,431 200,000 12,110 14,431 200,000
9 54 3,088 35,753 0 13,792 15,781 200,000 13,792 15,781 200,000
10 55 3,088 40,783 0 15,353 17,011 200,000 15,353 17,011 200,000
Total 30,880
11 56 3,088 46,064 0 16,931 18,258 200,000 16,931 18,258 200,000
12 57 3,088 51,610 0 18,356 19,351 200,000 18,356 19,351 200,000
13 58 3,088 57,433 0 19,629 20,292 200,000 19,629 20,292 200,000
14 59 3,088 63,547 0 20,731 21,063 200,000 20,731 21,063 200,000
15 60 3,088 69,966 0 21,643 21,643 200,000 21,643 21,643 200,000
16 61 3,088 76,707 0 22,012 22,012 200,000 22,012 22,012 200,000
17 62 3,088 83,785 0 22,149 22,149 200,000 22,149 22,149 200,000
18 63 3,088 91,216 0 22,053 22,053 200,000 22,053 22,053 200,000
19 64 3,088 99,020 0 21,639 21,639 200,000 21,639 21,639 200,000
20 65 3,088 107,213 0 20,881 20,881 200,000 20,881 20,881 200,000
Total 61,760
21 66 3,088 115,816 0 19,792 19,792 200,000 19,792 19,792 200,000
22 67 3,088 124,849 0 18,281 18,281 200,000 18,281 18,281 200,000
23 68 3,088 134,334 0 16,290 16,290 200,000 16,290 16,290 200,000
24 69 3,088 144,293 0 13,759 13,759 200,000 13,759 13,759 200,000
25 70 3,088 154,750 0 10,640 10,640 200,000 10,640 10,640 200,000
26 71 3,088 165,730 0 6,810 6,810 200,000 6,810 6,810 200,000
27 72 3,088 177,259 0 2,014 2,014 200,000 2,014 2,014 200,000
28 73 3,088 189,365 0 LAPSE LAPSE LAPSE LAPSE LAPSE LAPSE
29 74 3,088 202,075 0
30 75 3,088 215,421 0
Total 92,640
31 76 3,088 229,435 0
32 77 3,088 244,149 0
33 78 3,088 259,599 0
34 79 3,088 275,821 0
35 80 3,088 292,855 0
--------
Total 108,080
<CAPTION>
CURRENT CHARGES
--------------------------------
0.00% (- 1.49% NET)
--------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ------ --------
<S> <C> <C> <C>
1 314 2,117 200,000
2 2,361 4,435 200,000
3 3,314 6,630 200,000
4 5,368 8,684 200,000
5 7,331 10,647 200,000
6 9,491 12,476 200,000
7 11,587 14,240 200,000
8 13,621 15,942 200,000
9 15,615 17,604 200,000
10 17,549 19,207 200,000
Total
11 19,507 20,833 200,000
12 21,288 22,283 200,000
13 22,981 23,644 200,000
14 24,607 24,938 200,000
15 26,188 26,188 200,000
16 27,372 27,372 200,000
17 28,412 28,412 200,000
18 29,267 29,267 200,000
19 30,001 30,001 200,000
20 30,614 30,614 200,000
Total
21 31,130 31,130 200,000
22 31,486 31,486 200,000
23 31,642 31,642 200,000
24 31,539 31,539 200,000
25 31,114 31,114 200,000
26 30,363 30,363 200,000
27 29,199 29,199 200,000
28 27,641 27,651 200,000
29 25,584 25,584 200,000
30 22,933 22,933 200,000
Total
31 19,693 19,693 200,000
32 15,676 15,676 200,000
33 10,717 10,717 200,000
34 3,835 3,835 200,000
35 LAPSE LAPSE LAPSE
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 73. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 80.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 04:59 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-4
<PAGE> 95
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MALE 45 PREF N/S DB OPT MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
1 0% GROSS FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
MALE NON-SMOKER PREFERRED AGE 45 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
0.00% (- 1.49% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 314 2,117 200,000
2 47 3,088 0 0 0 2,361 4,435 200,000
3 48 3,088 0 0 0 3,314 6,630 200,000
4 49 3,088 0 0 0 5,368 8,684 200,000
5 50 3,088 0 0 0 7,331 10,647 200,000
6 51 3,088 0 0 0 9,491 12,476 200,000
7 52 3,088 0 0 0 11,587 14,240 200,000
8 53 3,088 0 0 0 13,621 15,942 200,000
9 54 3,088 0 0 0 15,615 17,604 200,000
10 55 3,088 0 0 0 17,549 19,207 200,000
11 56 3,088 0 0 0 19,507 20,833 200,000
12 57 3,088 0 0 0 21,288 22,283 200,000
13 58 3,088 0 0 0 22,981 23,644 200,000
14 59 3,088 0 0 0 24,607 24,938 200,000
15 60 3,088 0 0 0 26,188 26,188 200,000
16 61 3,088 0 0 0 27,372 27,372 200,000
17 62 3,088 0 0 0 28,412 28,412 200,000
18 63 3,088 0 0 0 29,267 29,267 200,000
19 64 3,088 0 0 0 30,001 30,001 200,000
20 65 3,088 0 0 0 30,614 30,614 200,000
21 66 3,088 0 0 0 31,130 31,130 200,000
22 67 3,088 0 0 0 31,486 31,486 200,000
23 68 3,088 0 0 0 31,642 31,642 200,000
24 69 3,088 0 0 0 31,539 31,539 200,000
25 70 3,088 0 0 0 31,114 31,114 200,000
26 71 3,088 0 0 0 30,363 30,363 200,000
27 72 3,088 0 0 0 29,199 29,199 200,000
28 73 3,088 0 0 0 27,651 27,651 200,000
29 74 3,088 0 0 0 25,584 25,584 200,000
30 75 3,088 0 0 0 22,933 22,933 200,000
31 76 3,088 0 0 0 19,693 19,693 200,000
32 77 3,088 0 0 0 15,676 15,676 200,000
33 78 3,088 0 0 0 10,717 10,717 200,000
34 79 3,088 0 0 0 3,835 3,835 200,000
35 80 3,088 0 0 0 LAPSE LAPSE LAPSE
------
Total 108,080
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 73. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 80.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 04:59 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-5
<PAGE> 96
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 3,088.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
-----------------------------------------------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET)
--------------------------------- ---------------------------------
(1) (2) (3) (6) (9)
NET PREMIUM NET (4) (5) BENEFIT (7) (8) BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ------ -------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 3,242 0 314 2,117 200,000 462 2,265 200,000
2 47 3,088 6,647 0 2,058 4,132 200,000 2,485 4,559 200,000
3 48 3,088 10,222 0 2,762 6,078 200,000 3,600 6,916 200,000
4 49 3,088 13,975 0 4,617 7,933 200,000 6,002 9,318 200,000
5 50 3,088 17,916 0 6,385 9,701 200,000 8,452 11,768 200,000
6 51 3.088 22,055 0 8,398 11,383 200,000 11,287 14,271 200,000
7 52 3,088 26,400 0 10,306 12,959 200,000 14,155 16,808 200,000
8 53 3,088 30,962 0 12,110 14,431 200,000 17,063 19,384 200,000
9 54 3,088 35,753 0 13,792 15,781 200,000 19,991 21,981 200,000
10 55 3,088 40,783 0 15,353 17,011 200,000 22,945 24,603 200,000
Total 30,880
11 56 3,088 46,064 0 16,931 18,258 200,000 26,114 27,440 200,000
12 57 3,088 51,610 0 18,356 19,351 200,000 29,301 30,295 200,000
13 58 3,088 57,433 0 19,629 20,292 200,000 32,511 33,174 200,000
14 59 3,088 63,547 0 20,731 21,063 200,000 35,732 36,063 200,000
15 60 3,088 69,966 0 21,643 21,643 200,000 38,949 38,949 200,000
16 61 3,088 76,707 0 22,012 22,012 200,000 41,817 41,817 200,000
17 62 3,088 83,785 0 22,149 22,149 200,000 44,655 44,655 200,000
18 63 3,088 91,216 0 22,053 22,053 200,000 47,469 47,469 200,000
19 64 3,088 99,020 0 21,639 21,639 200,000 50,191 50,191 200,000
20 65 3,088 107,213 0 20,881 20,881 200,000 52,805 52,805 200,000
Total 61,760
21 66 3,088 115,816 0 19,792 19,792 200,000 55,345 55,345 200,000
22 67 3,088 124,849 0 18,281 18,281 200,000 57,734 57,734 200,000
23 68 3,088 134,334 0 16,290 16,290 200,000 59,936 59,936 200,000
24 69 3,088 144,293 0 13,759 13,759 200,000 61,915 61,915 200,000
25 70 3,088 154,750 0 10,640 10,640 200,000 63,646 63,646 200,000
26 71 3,088 165,730 0 6,810 6,810 200,000 65,053 65,053 200,000
27 72 3,088 177,259 0 2,014 2,014 200,000 65,966 65,966 200,000
28 73 3,088 189,365 0 LAPSE LAPSE LAPSE 66,433 66,433 200,000
29 74 3,088 202,075 0 66,265 66,265 200,000
30 75 3,088 215,421 0 65,278 65,278 200,000
Total 92,640
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
(12)
(10) (11) BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- ------- --------
<S> <C> <C> <C>
1 462 2,265 200,000
2 2,797 4,871 200,000
3 4,188 7,504 200,000
4 6,829 10,145 200,000
5 9,527 12,843 200,000
6 12,574 15,558 200,000
7 15,709 18,362 200,000
8 18,937 21,259 200,000
9 22,287 24,277 200,000
10 25,744 27,402 200,000
Total
11 29,453 30,779 200,000
12 33,186 34,180 200,000
13 37,031 37,694 200,000
14 41,019 41,351 200,000
15 45,180 45,180 200,000
16 49,175 49,175 200,000
17 53,275 53,275 200,000
18 57,459 57,459 200,000
19 61,792 61,792 200,000
20 66,290 66,290 200,000
Total
21 71,004 71,004 200,000
22 75,889 75,889 200,000
23 80,939 80,939 200,000
24 86,131 86,131 200,000
25 91,453 91,453 200,000
26 96,935 96,935 200,000
27 102,559 102,559 200,000
28 108,388 108,388 200,000
29 114,398 114,398 200,000
30 120,619 120,619 200,000
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 83. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 04:59 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-6
<PAGE> 97
<TABLE>
<CAPTION>
GUARANTEED CHARGES
-----------------------------------------------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET)
--------------------------------- ---------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
NET PREMIUM NET BENEFIT BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ------ -------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
31 76 3,088 229,435 0 63,304 63,304 200,000
32 77 3,088 244,149 0 60,153 60,153 200,000
33 78 3,088 259,599 0 55,584 55,584 200,000
34 79 3,088 275,821 0 49,289 49,289 200,000
35 80 3,088 292,855 0 40,853 40,853 200,000
36 81 3,088 310,740 0 29,676 29,676 200,000
37 82 3,088 329,519 0 14,938 14,938 200,000
38 83 3,088 349,237 0 LAPSE LAPSE LAPSE
39 84 3,088 369,942 0
40 85 3,088 391,681 0
Total 123,520
41 86 3,088 414,508 0
42 87 3,088 438,475 0
43 88 3,088 463,642 0
44 89 3,088 490,066 0
45 90 3,088 517,812 0
46 91 3,088 546,945 0
47 92 3,088 577,534 0
48 93 3,088 609,654 0
49 94 3,088 643,379 0
50 95 3,088 678,790 0
-------
Total 154,400
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
(10) (11) (12)
BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- ------- --------
<S> <C> <C> <C>
31 127,119 127,119 200,000
32 133,902 133,902 200,000
33 141,009 141,009 200,000
34 148,271 148,271 200,000
35 155,975 155,975 200,000
36 164,270 164,270 200,000
37 173,296 173,296 200,000
38 183,423 183,423 200,000
39 194,724 194,724 204,460
40 206,554 206,554 216,882
Total
41 218,822 218,822 229,763
42 231,511 231,511 243,087
43 244,629 244,629 256,861
44 258,168 258,168 271,076
45 272,118 272,118 285,724
46 286,443 286,443 300,765
47 301,605 301,605 313,669
48 317,706 317,706 327,237
49 334,995 334,995 341,695
50 353,780 353,780 357,318
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 83. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 04:59 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-7
<PAGE> 98
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MALE 45 PREF N/S DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 3,088.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 462 2,265 200,000
2 47 3,088 0 0 0 2,797 4,871 200,000
3 48 3,088 0 0 0 4,188 7,504 200,000
4 49 3,088 0 0 0 6,829 10,145 200,000
5 50 3,088 0 0 0 9,527 12,843 200,000
6 51 3,088 0 0 0 12,574 15,558 200,000
7 52 3,088 0 0 0 15,709 18,362 200,000
8 53 3,088 0 0 0 18,937 21,259 200,000
9 54 3,088 0 0 0 22,287 24,277 200,000
10 55 3,088 0 0 0 25,744 27,402 200,000
11 56 3,088 0 0 0 29,453 30,779 200,000
12 57 3,088 0 0 0 33,186 34,180 200,000
13 58 3,088 0 0 0 37,031 37,694 200,000
14 59 3,088 0 0 0 41,019 41,351 200,000
15 60 3,088 0 0 0 45,180 45,180 200,000
16 61 3,088 0 0 0 49,175 49,175 200,000
17 62 3,088 0 0 0 53,275 53,275 200,000
18 63 3,088 0 0 0 57,459 57,459 200,000
19 64 3,088 0 0 0 61,792 61,792 200,000
20 65 3,088 0 0 0 66,290 66,290 200,000
21 66 3,088 0 0 0 71,004 71,004 200,000
22 67 3,088 0 0 0 75,889 75,889 200,000
23 68 3,088 0 0 0 80,939 80,939 200,000
24 69 3,088 0 0 0 86,131 86,131 200,000
25 70 3,088 0 0 0 91,453 91,453 200,000
26 71 3,088 0 0 0 96,935 96,935 200,000
27 72 3,088 0 0 0 102,559 102,559 200,000
28 73 3,088 0 0 0 108,388 108,388 200,000
29 74 3,088 0 0 0 114,398 114,398 200,000
30 75 3,088 0 0 0 120,619 120,619 200,000
31 76 3,088 0 0 0 127,119 127,119 200,000
32 77 3,088 0 0 0 133,902 133,902 200,000
33 78 3,088 0 0 0 141,009 141,009 200,000
34 79 3,088 0 0 0 148,271 148,271 200,000
35 80 3,088 0 0 0 155,975 155,975 200,000
36 81 3,088 0 0 0 164,270 164,270 200,000
37 82 3,088 0 0 0 173,296 173,296 200,000
38 83 3,088 0 0 0 183,423 183,423 200,000
39 84 3,088 0 0 0 194,724 194,724 204,460
40 85 3,088 0 0 0 206,554 206,554 216,882
-------
Total 123,520
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 83. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 04:59 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-8
<PAGE> 99
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 0 0 0 218,822 218,822 229,763
42 87 3,088 0 0 0 231,511 231,511 243,087
43 88 3,088 0 0 0 244,629 244,629 256,861
44 89 3,088 0 0 0 258,168 258,168 271,076
45 90 3,088 0 0 0 272,118 272,118 285,724
46 91 3,088 0 0 0 286,443 286,443 300,765
47 92 3,088 0 0 0 301,605 301,605 313,669
48 93 3,088 0 0 0 317,706 317,706 327,237
49 94 3,088 0 0 0 334,995 334,995 341,695
50 95 3,088 0 0 0 353,780 353,780 357,318
------
Total 154,400
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 83. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 04:59 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-9
<PAGE> 100
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
1 12% FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
MALE NON-SMOKER PREFERRED AGE 45 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
--------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
NET PREMIUM NET BENEFIT BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ------ -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 3,242 0 314 2,117 200,000 611 2,414 200,000
2 47 3,088 6,647 0 2,058 4,132 200,000 2,931 5,005 200,000
3 48 3,088 10,222 0 2,762 6,078 200,000 4,511 7,827 200,000
4 49 3,088 13,975 0 4,617 7,933 200,000 7,568 10,884 200,000
5 50 3,088 17,916 0 6,385 9,701 200,000 10,887 14,203 200,000
6 51 3.088 22,055 0 8,398 11,383 200,000 14,830 17,815 200,000
7 52 3,088 26,400 0 10,306 12,959 200,000 19,078 21,731 200,000
8 53 3,088 30,962 0 12,110 14,431 200,000 23,670 25,991 200,000
9 54 3,088 35,753 0 13,792 15,781 200,000 28,624 30,614 200,000
10 55 3,088 40,783 0 15,353 17,011 200,000 33,988 35,646 200,000
Total 30,880
11 56 3,088 46,064 0 16,931 18,258 200,000 40,073 41,399 200,000
12 57 3,088 51,610 0 18,356 19,351 200,000 46,701 47,695 200,000
13 58 3,088 57,433 0 19,629 20,292 200,000 53,949 54,612 200,000
14 59 3,088 63,547 0 20,731 21,063 200,000 61,885 62,217 200,000
15 60 3,088 69,966 0 21,643 21,643 200,000 70,592 70,592 200,000
16 61 3,088 76,707 0 22,012 22,012 200,000 79,837 79,837 200,000
17 62 3,088 83,785 0 22,149 22,149 200,000 90,066 90,066 200,000
18 63 3,088 91,216 0 22,053 22,053 200,000 101,434 101,434 200,000
19 64 3,088 99,020 0 21,639 21,639 200,000 114,068 114,068 200,000
20 65 3,088 107,213 0 20,881 20,881 200,000 128,171 128,171 200,000
Total 61,760
21 66 3,088 115,816 0 19,792 19,792 200,000 144,046 144,046 200,000
22 67 3,088 124,849 0 18,281 18,281 200,000 161,929 161,929 200,000
23 68 3,088 134,334 0 16,290 16,290 200,000 182,045 182,045 214,813
24 69 3,088 144,293 0 13,759 13,759 200,000 204,249 204,249 238,971
25 70 3,088 154,750 0 10,640 10,640 200,000 228,730 228,730 265,327
26 71 3,088 165,730 0 6,810 6,810 200,000 255,712 255,712 294,069
27 72 3,088 177,259 0 2,014 2,014 200,000 285,532 285,532 322,652
28 73 3,088 189,365 0 LAPSE LAPSE LAPSE 318,573 318,573 353,616
29 74 3,088 202,075 0 355,214 355,214 387,184
30 75 3,088 215,421 0 395,923 395,923 423,637
Total 92,640
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(10) (11) (12)
BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- --------- ---------
<S> <C> <C> <C>
1 611 2,414 200,000
2 3,252 5,326 200,000
3 5,135 8,451 200,000
4 8,475 11,791 200,000
5 12,104 15,420 200,000
6 16,342 19,326 200,000
7 20,959 23,612 200,000
8 26,000 28,321 200,000
9 31,533 33,523 200,000
10 37,595 39,253 200,000
Total
11 44,465 45,791 200,000
12 51,941 52,936 200,000
13 60,182 60,845 200,000
14 69,301 69,633 200,000
15 79,426 79,426 200,000
16 90,334 90,334 200,000
17 102,445 102,445 200,000
18 115,901 115,901 200,000
19 130,925 130,925 200,000
20 147,730 147,730 200,000
Total
21 166,619 166,619 200,000
22 187,659 187,659 223,314
23 210,930 210,930 248,897
24 236,658 236,658 276,890
25 265,093 265,093 307,508
26 296,526 296,526 341,005
27 331,331 331,331 374,404
28 369,921 369,921 410,612
29 412,725 412,725 449,870
30 460,260 460,260 492,478
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in N.J.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:00 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-10
<PAGE> 101
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------------
0.00% (-1.49% NET) 12.00% (10.42% NET)
--------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
NET PREMIUM NET BENEFIT BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ------ -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31 76 3,088 229,435 0 441,266 441,266 463,329
32 77 3,088 244,149 0 491,271 491,271 515,834
33 78 3,088 259,599 0 546,387 546,387 573,706
34 79 3,088 275,821 0 607,103 607,103 637,458
35 80 3,088 292,855 0 673,946 673,946 707,643
36 81 3,088 310,740 0 747,470 747,470 784,843
37 82 3,088 329,519 0 828,266 828,266 869,680
38 83 3,088 349,237 0 916,937 916,937 962,784
39 84 3,088 369,942 0 1,014,117 1,014,117 1,064,823
40 85 3,088 391,681 0 1,120,475 1,120,475 1,176,499
Total 123,520
41 86 3,088 414,508 0 1,236,723 1,236,723 1,298,559
42 87 3,088 438,475 0 1,363,617 1,363,617 1,431,798
43 88 3,088 463,642 0 1,501,966 1,501,966 1,577,065
44 89 3,088 490,066 0 1,652,618 1,652,618 1,735,249
45 90 3,088 517,812 0 1,816,466 1,816,466 1,907,289
46 91 3,088 546,945 0 1,994,396 1,994,396 2,094,116
47 92 3,088 577,534 0 2,193,082 2,193,082 2,280,806
48 93 3,088 609,654 0 2,416,070 2,416,070 2,488,552
49 94 3,088 643,379 0 2,667,724 2,667,724 2,721,079
50 95 3,088 678,790 0 2,953,491 2,953,491 2,983,026
-------
Total 154,400
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(10) (11) (12)
BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- --------- ---------
<S> <C> <C> <C>
31 513,134 513,134 538,791
32 571,602 571,602 600,182
33 636,223 636,223 668,034
34 707,462 707,462 742,835
35 786,062 786,062 825,365
36 872,748 872,748 916,385
37 968,248 968,248 1,016,661
38 1,073,711 1,073,711 1,127,397
39 1,189,890 1,189,890 1,249,384
40 1,317,705 1,317,705 1,383,590
Total
41 1,458,256 1,458,256 1,531,169
42 1,612,574 1,612,574 1,693,203
43 1,781,931 1,781,931 1,871,028
44 1,967,590 1,967,590 2,065,970
45 2,170,903 2,170,903 2,279,448
46 2,393,096 2,393,096 2,512,751
47 2,639,826 2,639,826 2,745,419
48 2,914,390 2,914,390 3,001,822
49 3,221,893 3,221,893 3,286,331
50 3,568,777 3,568,777 3,604,465
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in N.J.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:00 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-11
<PAGE> 102
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT 1 MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
12% FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
MALE NON-SMOKER PREFERRED AGE 45 TO AGE 95 SPECIFIED AMOUNT
1ST YR ANNUAL PREMIUM = 3,088.00 MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 611 2,414 200,000
2 47 3,088 0 0 0 3,252 5,326 200,000
3 48 3,088 0 0 0 5,135 8,451 200,000
4 49 3,088 0 0 0 8,475 11,791 200,000
5 50 3,088 0 0 0 12,104 15,420 200,000
6 51 3,088 0 0 0 16,342 19,326 200,000
7 52 3,088 0 0 0 20,959 23,612 200,000
8 53 3,088 0 0 0 26,000 28,321 200,000
9 54 3,088 0 0 0 31,533 33,523 200,000
10 55 3,088 0 0 0 37,595 39,253 200,000
11 56 3,088 0 0 0 44,465 45,791 200,000
12 57 3,088 0 0 0 51,941 52,936 200,000
13 58 3,088 0 0 0 60,182 60,845 200,000
14 59 3,088 0 0 0 69,301 69,633 200,000
15 60 3,088 0 0 0 79,426 79,426 200,000
16 61 3,088 0 0 0 90,334 90,334 200,000
17 62 3,088 0 0 0 102,445 102,445 200,000
18 63 3,088 0 0 0 115,901 115,901 200,000
19 64 3,088 0 0 0 130,925 130,925 200,000
20 65 3,088 0 0 0 147,730 147,703 200,000
21 66 3,088 0 0 0 166,619 166,619 200,000
22 67 3,088 0 0 0 187,659 187,659 223,314
23 68 3,088 0 0 0 210,930 210,930 248,897
24 69 3,088 0 0 0 236,658 236,658 276,890
25 70 3,088 0 0 0 265,093 265,093 307,508
26 71 3,088 0 0 0 296,526 296,526 341,005
27 72 3,088 0 0 0 331,331 331,331 374,404
28 73 3,088 0 0 0 369,921 369,921 410,612
29 74 3,088 0 0 0 412,725 412,725 449,870
30 75 3,088 0 0 0 460,260 460,260 492,478
31 76 3,088 0 0 0 513,134 513,134 538,791
32 77 3,088 0 0 0 571,602 571,602 600,182
33 78 3,088 0 0 0 636,223 636,223 668,034
34 79 3,088 0 0 0 707,462 707,462 742,835
35 80 3,088 0 0 0 786,062 786,062 825,365
36 81 3,088 0 0 0 872,748 872,748 916,385
37 82 3,088 0 0 0 968,248 968,248 1,016,661
38 83 3,088 0 0 0 1,073,711 1,073,711 1,127,397
39 84 3,088 0 0 0 1,189,890 1,189,890 1,249,384
40 85 3,088 0 0 0 1,317,705 1,317,705 1,383,590
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:00 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-12
<PAGE> 103
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,008 0 0 0 1,458,256 1,458,256 1,531,169
42 87 3,088 0 0 0 1,612,574 1,612,576 1,693,203
43 88 3,088 0 0 0 1,781,931 1,781,931 1,871,028
44 89 3,088 0 0 0 1,967,590 1,967,590 2,065,970
45 90 3,088 0 0 0 2,170,903 2,170,903 2,279,448
46 91 3,088 0 0 0 2,393,096 2,393,096 2,512,751
47 92 3,088 0 0 0 2,639,826 2,639,926 2,745,419
48 93 3,088 0 0 0 2,914,390 2,914,390 3,001,822
49 94 3,088 0 0 0 3,221,893 3,221,893 3,286,331
50 95 3,088 0 0 0 3,568,777 3,568,777 3,604,465
------
Total 154,400
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:00 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-13
<PAGE> 104
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: FEMALE 45 PREF N/S DB OPT 1 0% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 2,578.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------------
0.00% (-1.49% NET) 0.00% (-1.49% NET)
--------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
NET PREMIUM NET BENEFIT BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------ ------- --------- --------- ------ -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 2,707 0 27 1,698 200,000 27 1,698 200,000
2 47 2,578 5,549 0 1,422 3,320 200,000 1,422 3,320 200,000
3 48 2,578 8,534 0 1,966 4,899 200,000 1,966 4,899 200,000
4 49 2,578 11,667 0 3,481 6,415 200,000 3,481 6,415 200,000
5 50 2,578 14,957 0 4,911 7,844 200,000 4,911 7,844 200,000
6 51 2,578 18,412 0 6,573 9,213 200,000 6,573 9,213 200,000
7 52 2,578 22,040 0 8,152 10,499 200,000 8,152 10,499 200,000
8 53 2,578 25,848 0 9,651 11,705 200,000 9,651 11,705 200,000
9 54 2,578 29,848 0 11,071 12,832 200,000 11,071 12,832 200,000
10 55 2,578 34,047 0 12,414 13,881 200,000 12,414 13,881 200,000
Total 25,780
11 56 2,578 38,456 0 13,788 14,961 200,000 13,788 14,961 200,000
12 57 2,578 43,086 0 15,070 15,950 200,000 15,070 15,950 200,000
13 58 2,578 47,947 0 16,261 16,847 200,000 16,261 16,847 200,000
14 59 2,578 53,052 0 17,362 17,656 200,000 17,362 17,656 200,000
15 60 2,578 58,411 0 18,375 18,375 200,000 18,375 18,375 200,000
16 61 2,578 64,038 0 19,007 19,007 200,000 19,007 19,007 200,000
17 62 2,578 69,947 0 19,509 19,509 200,000 19,509 19,509 200,000
18 63 2,578 76,152 0 19,860 19,860 200,000 19,860 19,860 200,000
19 64 2,578 82,666 0 20,040 20,040 200,000 20,040 20,040 200,000
20 65 2,578 89,506 0 20,006 20,006 200,000 20,006 20,006 200,000
Total 51,560
21 66 2,578 96,688 0 19,766 19,766 200,000 19,766 19,766 200,000
22 67 2,578 104,230 0 19,288 19,288 200,000 19,288 19,288 200,000
23 68 2,578 112,148 0 18,549 18,549 200,000 18,549 18,549 200,000
24 69 2,578 120,462 0 17,545 17,545 200,000 17,545 17,545 200,000
25 70 2,578 129,192 0 16,248 16,248 200,000 16,248 16,248 200,000
26 71 2,578 138,359 0 14,609 14,609 200,000 14,609 14,609 200,000
27 72 2,578 147,984 0 12,527 12,527 200,000 12,527 12,527 200,000
28 73 2,578 158,090 0 9,920 9,920 200,000 9,920 9,920 200,000
29 74 2,578 168,701 0 6,627 6,627 200,000 6,627 6,627 200,000
30 75 2,578 179,843 0 2,519 2,519 200,000 2,519 2,519 200,000
Total 77,340
31 76 2,578 191,542 0 LAPSE LAPSE LAPSE LAPSE LAPSE LAPSE
32 77 2,578 203,826 0
33 78 2,578 216,725 0
34 79 2,578 230,268 0
35 80 2,578 244,488 0
36 81 2,578 259,419 0
37 82 2,578 275,097 0
38 83 2,578 291,559 0
------
Total 97,964
<CAPTION>
CURRENT CHARGES
-------------------------------------
0.00% (-1.49% NET)
-------------------------------------
(10) (11) (12)
BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- --------- ---------
<S> <C> <C> <C>
1 27 1,698 200,000
2 1,749 3,647 200,000
3 2,590 5,524 200,000
4 4,328 7,262 200,000
5 5,976 8,909 200,000
6 7,694 10,334 200,000
7 9,351 11,698 200,000
8 10,972 13,025 200,000
9 12,556 14,316 200,000
10 14,082 15,549 200,000
Total
11 15,624 16,797 200,000
12 17,095 17,975 200,000
13 18,517 19,104 200,000
14 19,828 20,121 200,000
15 21,113 21,113 200,000
16 22,080 22,080 200,000
17 23,023 23,023 200,000
18 23,837 23,837 200,000
19 24,628 24,628 200,000
20 25,313 25,313 200,000
Total
21 25,903 25,903 200,000
22 26,368 26,368 200,000
23 26,689 26,689 200,000
24 26,865 26,865 200,000
25 26,939 26,939 200,000
26 26,827 26,827 200,000
27 26,530 26,530 200,000
28 26,024 26,024 200,000
29 25,244 25,244 200,000
30 24,167 24,167 200,000
Total
31 22,680 22,680 200,000
32 20,772 20,772 200,000
33 18,364 18,364 200,000
34 15,303 15,303 200,000
35 11,556 11,556 200,000
36 6,899 6,899 200,000
37 1,291 1,291 200,000
38 LAPSE LAPSE LAPSE
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 83.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,625.68 INITIAL GUIDELINE ANNUAL: $2,941.36 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 05:01 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-14
<PAGE> 105
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: FEMALE 45 PREF N/S DB OPT 1 0% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 2,578.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
0.00% (-1.49% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ----- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 0 0 27 1,698 200,000
2 47 2,578 0 0 0 1,749 3,647 200,000
3 48 2,578 0 0 0 2,590 5,524 200,000
4 49 2,578 0 0 0 4,328 7,262 200,000
5 50 2,578 0 0 0 5,976 8,909 200,000
6 51 2,578 0 0 0 7,694 10,334 200,000
7 52 2,578 0 0 0 9,351 11,698 200,000
8 53 2,578 0 0 0 10,972 13,025 200,000
9 54 2,578 0 0 0 12,556 14,316 200,000
10 55 2,578 0 0 0 14,082 15,549 200,000
11 56 2,578 0 0 0 15,624 16,797 200,000
12 57 2,578 0 0 0 17,095 17,975 200,000
13 58 2,578 0 0 0 18,517 19,104 200,000
14 59 2,578 0 0 0 19,828 20,121 200,000
15 60 2,578 0 0 0 21,113 21,113 200,000
16 61 2,578 0 0 0 22,080 22,080 200,000
17 62 2,578 0 0 0 23,023 23,023 200,000
18 63 2,578 0 0 0 23,837 23,837 200,000
19 64 2,578 0 0 0 24,628 24,628 200,000
20 65 2,578 0 0 0 25,313 25,313 200,000
21 66 2,578 0 0 0 25,903 25,903 200,000
22 67 2,578 0 0 0 26,368 26,368 200,000
23 68 2,578 0 0 0 26,689 26,689 200,000
24 69 2,578 0 0 0 26,865 26,865 200,000
25 70 2,578 0 0 0 26,939 26,939 200,000
26 71 2,578 0 0 0 26,827 26,827 200,000
27 72 2,578 0 0 0 26,530 26,530 200,000
28 73 2,578 0 0 0 26,024 26,024 200,000
29 74 2,578 0 0 0 25,244 25,244 200,000
30 75 2,578 0 0 0 24,167 24,167 200,000
31 76 2,578 0 0 0 22,680 22,680 200,000
32 77 2,578 0 0 0 20,772 20,772 200,000
33 78 2,578 0 0 0 18,364 18,364 200,000
34 79 2,578 0 0 0 15,303 15,303 200,000
35 80 2,578 0 0 0 11,556 11,556 200,000
36 81 2,578 0 0 0 6,899 6,899 200,000
37 82 2,578 0 0 0 1,291 1,291 200,000
38 83 2,578 0 0 0 LAPSE LAPSE LAPSE
-------
Total 97,964
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 83.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,625.68 INITIAL GUIDELINE ANNUAL: $2,941.36 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 05:01 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-15
<PAGE> 106
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: FEMALE 45 PREF N/S DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 2,578.00 MONY LIFE OF AMERICA SPECIFIED AMOUNT
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------------
0.00% (- 1.49% NET) 6.00% (4.46% NET)
--------------------------------- --------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- ------- -------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 2,707 0 27 1,698 200,000 149 1,819 200,000
2 47 2,578 5,549 0 1,422 3,320 200,000 1,770 3,668 200,000
3 48 2,578 8,534 0 1,966 4,899 200,000 2,648 5,581 200,000
4 49 2,578 11,667 0 3,481 6,415 200,000 4,606 7,540 200,000
5 50 2,578 14,957 0 4,911 7,844 200,000 6,589 9,523 200,000
6 51 2,578 18,412 0 6,573 9,213 200,000 8,916 11,556 200,000
7 52 2,578 22,040 0 8,152 10,499 200,000 11,274 13,620 200,000
8 53 2,578 25,848 0 9,651 11,705 200,000 13,665 15,719 200,000
9 54 2,578 29,848 0 11,071 12,832 200,000 16,094 17,854 200,000
10 55 2,578 34,047 0 12,414 13,881 200,000 18,563 20,030 200,000
Total 25,780
11 56 2,578 38,456 0 13,788 14,961 200,000 21,224 22,398 200,000
12 57 2,578 43,086 0 15,070 15,950 200,000 23,932 24,812 200,000
13 58 2,578 47,947 0 16,261 16,847 200,000 26,691 27,278 200,000
14 59 2,578 53,052 0 17,362 17,656 200,000 29,508 29,801 200,000
15 60 2,578 58,411 0 18,375 18,375 200,000 32,387 32,387 200,000
16 61 2,578 64,038 0 19,007 19,007 200,000 35,043 35,043 200,000
17 62 2,578 69,947 0 19,509 19,509 200,000 37,734 37,734 200,000
18 63 2,578 76,152 0 19,860 19,860 200,000 40,447 40,447 200,000
19 64 2,578 82,666 0 20,040 20,040 200,000 43,169 43,169 200,000
20 65 2,578 89,506 0 20,006 20,006 200,000 45,867 45,867 200,000
Total 51,560
21 66 2,578 96,688 0 19,766 19,766 200,000 48,564 48,564 200,000
22 67 2,578 104,230 0 19,280 19,288 200,000 51,232 51,232 200,000
23 68 2,578 112,148 0 18,549 18,549 200,000 53,857 53,857 200,000
24 69 2,578 120,462 0 17,545 17,545 200,000 56,445 56,445 200,000
25 70 2,578 129,192 0 16,248 16,248 200,000 58,983 58,983 200,000
26 71 2,578 138,359 0 14,609 14,609 200,000 61,442 61,442 200,000
27 72 2,578 147,984 0 12,527 12,527 200,000 63,757 63,757 200,000
28 73 2,578 158,090 0 9,920 9,920 200,000 65,877 65,877 200,000
29 74 2,578 168,701 0 6,627 6,627 200,000 67,702 67,702 200,000
30 75 2,578 179,843 0 2,519 2,519 200,000 69,155 69,155 200,000
Total 77,340
<CAPTION>
CURRENT CHARGES
---------------------------------
6.00% (4.46% NET)
---------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ------- --------
<S> <C> <C> <C>
1 149 1,819 200,000
2 2,108 4,005 200,000
3 3,311 6,245 200,000
4 5,538 8,471 200,000
5 7,799 10,732 200,000
6 10,254 12,894 200,000
7 12,769 15,116 200,000
8 15,370 17,423 200,000
9 18,062 19,822 200,000
10 20,828 22,294 200,000
Total
11 23,789 24,963 200,000
12 26,834 27,714 200,000
13 29,991 30,578 200,000
14 33,204 33,498 200,000
15 36,563 36,563 200,000
16 39,782 39,782 200,000
17 43,165 43,165 200,000
18 46,626 46,626 200,000
19 50,268 50,268 200,000
20 54,030 54,030 200,000
Total
21 57,943 57,943 200,000
22 61,986 61,986 200,000
23 66,154 66,154 200,000
24 70,464 70,464 200,000
25 74,962 74,962 200,000
26 79,606 79,606 200,000
27 84,416 84,416 200,000
28 89,398 89,398 200,000
29 94,537 94,537 200,000
30 99,848 99,848 200,000
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 87. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at an anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,625.68 INITIAL GUIDELINE ANNUAL: $2,941.36 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 05:02 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-16
<PAGE> 107
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------------
0.00% (- 1.49% NET) 6.00% (4.46% NET)
--------------------------------- --------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- ------- -------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31 76 2,578 191,542 0 LAPSE LAPSE LAPSE 70,134 70,134 200,000
32 77 2,578 203,826 0 70,542 70,542 200,000
33 78 2,578 216,725 0 70,296 70,296 200,000
34 79 2,578 230,268 0 69,246 69,246 200,000
35 80 2,578 244,488 0 67,228 67,228 200,000
36 81 2,578 259,419 0 63,986 63,986 200,000
37 82 2,578 275,097 0 59,183 59,183 200,000
38 83 2,578 291,559 0 52,314 52,314 200,000
39 84 2,578 308,844 0 42,695 42,695 200,000
40 85 2,578 326,993 0 29,464 29,464 200,000
Total 103,120
41 86 2,578 346,049 0 11,387 11,387 200,000
42 87 2,578 366,059 0 LAPSE LAPSE LAPSE
43 88 2,578 387,069 0
44 89 2,578 409,129 0
45 90 2,578 432,292 0
46 91 2,578 456,614 0
47 92 2,578 482,151 0
48 93 2,578 508,966 0
49 94 2,578 537,121 0
50 95 2,578 566,684 0
--------
Total 128,900
<CAPTION>
CURRENT CHARGES
---------------------------------
6.00% (4.46% NET)
---------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ------- --------
<S> <C> <C> <C>
31 105,301 105,301 200,000
32 110,931 110,931 200,000
33 116,748 116,748 200,000
34 122,738 122,738 200,000
35 128,956 128,956 200,000
36 135,400 135,400 200,000
37 142,154 142,154 200,000
38 149,173 149,173 200,000
39 156,551 156,551 200,000
40 164,328 164,328 200,000
Total
41 172,661 172,661 200,000
42 181,797 181,797 200,000
43 192,079 192,079 201,683
44 203,015 203,015 213,166
45 214,291 214,291 225,006
46 225,877 225,877 237,171
47 238,153 238,153 247,679
48 251,237 251,237 258,774
49 265,284 265,284 270,590
50 280,467 280,467 283,272
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 87. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at an anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,625.68 INITIAL GUIDELINE ANNUAL: $2,941.36 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 05:02 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-17
<PAGE> 108
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: FEMALE 45 PREF N/S DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 2,578.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
6.00% (4.46% NET)
-------------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON PAYABLE
YEAR AGE PREMIUM SURENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 0 0 149 1,819 200,000
2 47 2,578 0 0 0 2,108 4,005 200,000
3 48 2,578 0 0 0 3,311 6,245 200,000
4 49 2,578 0 0 0 5,538 8,471 200,000
5 50 2,578 0 0 0 7,799 10,732 200,000
6 51 2,578 0 0 0 10,254 12,894 200,000
7 52 2,578 0 0 0 12,769 15,116 200,000
8 53 2,578 0 0 0 15,370 17,423 200,000
9 54 2,578 0 0 0 18,062 19,822 200,000
10 55 2,578 0 0 0 20,828 22,294 200,000
11 56 2,578 0 0 0 23,789 24,963 200,000
12 57 2,578 0 0 0 26,834 27,714 200,000
13 58 2,578 0 0 0 29,991 30,578 200,000
14 59 2,578 0 0 0 33,204 33,498 200,000
15 60 2,578 0 0 0 36,563 36,563 200,000
16 61 2,578 0 0 0 39,782 39,782 200,000
17 62 2,578 0 0 0 43,165 43,165 200,000
18 63 2,578 0 0 0 46,626 46,626 200,000
19 64 2,578 0 0 0 50,268 50,268 200,000
20 65 2,578 0 0 0 54,030 54,030 200,000
21 66 2,578 0 0 0 57,943 57,943 200,000
22 67 2,578 0 0 0 61,986 61,986 200,000
23 68 2,578 0 0 0 66,154 66,154 200,000
24 69 2,578 0 0 0 70,464 70,464 200,000
25 70 2,578 0 0 0 74,962 74,962 200,000
26 71 2,578 0 0 0 79,606 79,606 200,000
27 72 2,578 0 0 0 84,416 84,416 200,000
28 73 2,578 0 0 0 89,398 89,398 200,000
29 74 2,578 0 0 0 94,537 94,537 200,000
30 75 2,578 0 0 0 99,848 99,848 200,000
31 76 2,578 0 0 0 105,301 105,301 200,000
32 77 2,578 0 0 0 110,931 110,931 200,000
33 78 2,578 0 0 0 116,748 116,748 200,000
34 79 2,578 0 0 0 122,738 122,738 200,000
35 80 2,578 0 0 0 128,956 128,956 200,000
36 81 2,578 0 0 0 135,400 135,400 200,000
37 82 2,578 0 0 0 142,154 142,154 200,000
38 83 2,578 0 0 0 149,173 149,173 200,000
39 84 2,578 0 0 0 156,551 156,551 200,000
40 85 2,578 0 0 0 164,328 164,328 200,000
-------
Total 123,520
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 83. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representaton of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shon if the actual
rates of investment return applicable to the contract averaged 0.00% or 6.00%
over a period of years, but also fluctuated above or below those averages for
individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 5:02 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-18
<PAGE> 109
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
6.00% (4.46% NET)
-------------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON PAYABLE
YEAR AGE PREMIUM SURENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 172,661 172,661 200,000
42 87 2,578 0 0 0 181,797 181,797 200,000
43 88 2,578 0 0 0 192,079 192,079 201,683
44 89 2,578 0 0 0 203,015 203,015 213,166
45 90 2,578 0 0 0 214,291 214,291 225,006
46 91 2,578 0 0 0 225,877 225,877 237,171
47 92 2,578 0 0 0 238,153 238,153 247,679
48 93 2,578 0 0 0 251,237 251,237 258,774
49 94 2,578 0 0 0 265,284 265,284 270,590
50 95 2,578 0 0 0 280,467 280,467 283,272
-------
Total 128,900
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 83. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representaton of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shon if the actual
rates of investment return applicable to the contract averaged 0.00% or 6.00%
over a period of years, but also fluctuated above or below those averages for
individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $3,517.70 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 5:02 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-19
<PAGE> 110
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: FEMALE 45 PREF N/S DB OPT 1 12% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 2,578.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------------------
0.00% (- 1.49% NET) 12.00% (- 10.42% NET)
---------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ----- --- -------- ------- --------- --------- -------- -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 2,707 0 27 1,698 200,000 270 1,940 200,000
2 47 2,578 5,549 0 1,422 1,422 200,000 2,133 4.031 200,000
3 48 2,578 8,534 0 1,966 4,899 200,000 3,388 6,322 200,000
4 49 2,578 11,667 0 3,481 6,415 200,000 5,878 8,812 200,000
5 50 2,578 14,957 0 4,911 7,844 200,000 8,566 11,499 200,000
6 51 2,578 18,412 0 6,573 9,213 200,000 11,791 14,431 200,000
7 52 2,578 22,040 0 8,152 10,499 200,000 15,266 17,612 200,000
8 53 2,578 25,848 0 9,651 11,705 200,000 19,019 21,213 200,000
9 54 2,578 29,848 0 11,071 12,832 200,000 23,086 24,846 200,000
10 55 2,578 34,047 0 12,414 13,881 200,000 27,502 28,968 200,000
Total 25,780
11 56 2,578 38,456 0 13,788 14,961 200,000 32,589 33,689 200,000
12 57 2,578 43,086 0 15,070 15,950 200,000 37,878 37,998 200,000
13 58 2,578 47,947 0 16,261 16,847 200,000 44,006 44,593 200,000
14 59 2,578 53,052 0 17,362 17,656 200,000 50,610 50,904 200,000
15 60 2,578 58,411 0 18,375 18,373 200,000 57,886 57,886 200,000
16 61 2,578 64,038 0 19,007 19,007 200,000 65,627 65,627 200,000
17 62 2,578 69,947 0 19,509 19,509 200,000 74,192 74,192 200,000
18 63 2,578 76,152 0 19,860 19,860 200,000 83,677 83,677 200,000
19 64 2,578 82,666 0 20,040 20,040 200,000 94,197 94,197 200,000
20 65 2,578 89,506 0 20,006 20,006 200,000 105,874 105,874 200,000
Total 51,560
21 66 2,578 96,688 0 19,766 19,766 200,000 118,917 118,917 200,000
22 67 2,578 104,230 0 19,288 19,288 200,000 133,486 133,486 200,000
23 68 2,578 112,148 0 18,549 18,549 200,000 149,810 149,810 200,000
24 69 ,578 120,462 0 17,545 17,545 200,000 168,162 168,162 200,000
25 70 2,578 129,192 0 16,248 16,248 200,000 188,706 188,706 218,899
26 71 ,578 138,359 0 14,609 14,609 200,000 211,422 211,422 243,135
27 72 2,578 147,984 0 12,527 12,527 200,000 236,581 236,581 267,336
28 73 2,578 158,090 0 9,920 9,920 200,000 264,462 264,462 293,553
29 74 2,578 168,701 0 6,627 6,627 200,000 295,379 295,379 321,963
30 75 2,578 179,843 0 2,519 2,519 200,000 329,703 329,703 352,782
Total 77,340
<CAPTION>
CURRENT CHARGES
------------------------
12.00% (- 10.42% NET)
-------------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ----- --------- ---------- ---------
<S> <C> <C> <C>
1 270 ,940 200,000
2 2,481 4,378 200,000
3 4,092 7,025 200,000
4 6,899 9,833 200,000
5 9,936 12,869 200,000
6 13,380 16,020 200,000
7 17,467 19,467 200,000
8 21,213 23,266 200,000
9 25,697 27,457 200,000
10 30,595 32,061 200,000
Total
11 36,137 37,310 200,000
12 42,224 43,104 200,000
13 48,944 49,531 200,000
14 56,318 56,611 200,000
15 64,500 64,500 200,000
16 73,295 73,295 200,000
17 83,105 83,105 200,000
18 93,979 93,979 200,000
19 106,124 106,124 200,000
20 119,649 119,649 200,000
Total
21 134,774 134,774 200,000
22 151,667 151,667 200,000
23 170,562 170,562 201,263
24 191,590 191,590 224,160
25 214,884 214,884 249,266
26 240,674 240,674 276,776
27 269,271 269,271 304,276
28 300,993 300,993 334,102
29 336,191 336,191 366,448
30 375,275 375,275 401,545
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,625.68 INITIAL GUIDELINE ANNUAL: $2,941.36 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 05:02 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-20
<PAGE> 111
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------------------
0.00% (- 1.49% NET) 12.00% (- 10.42% NET)
---------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ----- --- -------- ------- --------- --------- -------- -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31 76 2,578 191,542 0 LAPSE LAPSE LAPSE 367,868 367,868 386,262
32 77 2,578 203,826 0 410,040 410,040 430,542
33 78 2,578 216,725 0 456,622 456,622 479,453
34 79 2,578 230,268 0 508,044 508,044 533,447
35 80 2,578 244,488 0 564,780 564,780 593,019
36 81 2,578 259,419 0 627,330 627,330 658,697
37 82 2,578 275,097 0 696,232 696,232 731,044
38 83 2,578 291,559 0 772,041 772,041 810,643
39 84 2,578 308,844 0 855,342 855,342 898,109
40 85 2,578 326,993 0 946,761 946,761 994,099
Total 103,120
41 86 2,578 346,049 0 1,046,950 1,046,950 1,099,297
42 87 2,578 366,059 0 1,156,604 1,156,604 1,214,434
43 88 2,578 387,069 0 1,276,428 1,276,428 1,340,250
44 89 2,578 409,129 0 1,407,182 1,407,182 1,477,541
45 90 2,578 432,292 0 1,549,595 1,549,595 1,627,075
46 91 2,578 456,614 0 1,704,432 1,704,432 1,789,653
47 92 2,578 482,151 0 1,876,722 1,876,722 1,951,791
48 93 2,578 508,966 0 2,069,385 2,069,385 2,131,467
49 94 2,578 537,121 0 2,286,064 2,286,064 2,331,785
50 95 2,578 566,684 0 2,531,422 2,531,422 2,556,736
--------
Total 128,900
<CAPTION>
CURRENT CHARGES
------------------------
12.00% (- 10.42% NET)
-------------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ----- --------- ---------- ---------
<S> <C> <C> <C>
31 418,700 418,700 439,635
32 466,785 466,785 490,124
33 520,016 520,016 546,017
34 578,915 578,915 607,860
35 644,072 644,072 676,275
36 716,106 716,106 751,912
37 795,730 795,730 835,517
38 883,618 883,618 927,799
39 980,564 980,564 1,029,592
40 1,087,310 1,087,310 1,141,676
41 1,204,684 1,204,684 1,264,919
42 1,333,568 1,333,568 1,400,246
43 1,474,873 1,474,873 1,548,617
44 1,629,899 1,629,899 1,711,394
45 1,799,772 1,799,772 1,889,761
46 1,985,522 1,985,522 2,084,798
47 2,192,001 2,192,001 2,279,682
48 2,422,361 2,422,361 2,495,032
49 2,680,521 2,680,521 2,734,131
50 2,971,114 2,971,114 3,000,825
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,625.68 INITIAL GUIDELINE ANNUAL: $2,941.36 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 05:02 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-21
<PAGE> 112
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: FEMALE 45 PREF N/S DB OPT 1 12% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
FEMALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 2,578.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ----- --- ------- ----------- ---- ----- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 2,578 0 0 0 270 1,940 200,000
2 47 2,578 0 0 0 2,481 4,378 200,000
3 48 2,578 0 0 0 4,092 7,025 200,000
4 49 2,578 0 0 0 6,899 9,833 200,000
5 50 2,578 0 0 0 9,936 12,869 200,000
6 51 2,578 0 0 0 13,380 16,020 200,000
7 52 2,578 0 0 0 17,121 19,467 200,000
8 53 2,578 0 0 0 21,213 23,266 200,000
9 54 2,578 0 0 0 25,697 27,457 200,000
10 55 2,578 0 0 0 30,595 32,061 200,000
11 56 2,578 0 0 0 36,137 37,310 200,000
12 57 2,578 0 0 0 42,226 43,104 200,000
13 58 2,578 0 0 0 48,944 49,531 200,000
14 59 2,578 0 0 0 56,318 56,611 200,000
15 60 2,578 0 0 0 64,500 64,500 200,000
16 61 2,578 0 0 0 73,295 73,295 200,000
17 62 2,578 0 0 0 83,105 83,105 200,000
18 63 2,578 0 0 0 93,979 93,979 200,000
19 64 2,578 0 0 0 106,124 106,124 200,000
20 65 2,578 0 0 0 119,649 119,649 200,000
21 66 2,578 0 0 0 134,774 134,774 200,000
22 67 2,578 0 0 0 151,667 151,667 200,000
23 68 2,578 0 0 0 170,562 170,562 201,263
24 69 2,578 0 0 0 191,590 191,590 224,160
25 70 2,578 0 0 0 214,884 214,884 249,266
26 71 2,578 0 0 0 240,676 240,674 276,776
27 72 2,578 0 0 0 269,271 269,271 304,276
28 73 2,578 0 0 0 300,993 300,993 334,102
29 74 2,578 0 0 0 336,191 336,191 366,448
30 75 2,578 0 0 0 375,275 375,275 401,545
31 76 2,578 0 0 0 418,700 418,700 439,635
32 77 2,578 0 0 0 466,785 466,785 490,124
33 78 2,578 0 0 0 520,016 520,016 546,017
34 79 2,578 0 0 0 578,915 578,915 607,860
35 80 2,578 0 0 0 644,072 644,072 676,275
36 81 2,578 0 0 0 716,106 716,106 751,912
37 82 2,578 0 0 0 795,730 795,730 835,517
38 83 2,578 0 0 0 883,618 883,618 927,799
39 84 2,578 0 0 0 980,564 980,564 1,029,592
40 85 2,578 0 0 0 1,087,310 1,087,310 1,141,676
-------
Total 103,120
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,625.68 INITIAL GUIDELINE ANNUAL: $2,941.36 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 05:03 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-22
<PAGE> 113
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ----- --- ------- ----------- ---- ----- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 2,578 0 0 0 1,204,684 1,204,684 1,284,919
42 87 2,578 0 0 0 1,333,568 1,333,568 1,400,246
43 88 2,578 0 0 0 1,474,873 1,474,873 1,548,617
44 89 2,578 0 0 0 1,629,899 1,629,899 1,711,394
45 90 2,578 0 0 0 1,799,772 1,799,772 1,889,761
46 91 2,578 0 0 0 1,985,522 1,985,522 2,084,798
47 92 2,578 0 0 0 2,192,001 2,192,001 2,279,682
48 93 2,578 0 0 0 2,422,361 2,422,361 2,495,032
49 94 2,578 0 0 0 2,680,521 2,680,521 2,734,131
50 95 2,578 0 0 0 2,971,114 2,971,114 3,000,825
-------
Total 128,900
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $38,625.68 INITIAL GUIDELINE ANNUAL: $2,941.36 INITIAL TWO YEAR MINIMUM: $2,578.00
PREPARED ON: 01/04/95 05:03 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-23
<PAGE> 114
<TABLE>
<S> <C> <C>
STANDARD LEDGER STATEMENT
FOR: MALE 45 STANDARD SMOKER DB OPT 1 0% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE SMOKER STANDARD AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 4,162.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
-------------------------------------------------------------------------
0.00% (- 1.49% NET) 0.00% (- 1.49% NET)
---------------------------------- ----------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 4,370 0 573 2,655 200,000 573 2,655 200,000
2 47 4,162 8,959 0 2,572 5,023 200,000 2,572 5,023 200,000
3 48 4,162 13,777 0 3,136 7,258 200,000 3,186 7,258 200,000
4 49 4,162 18,836 0 5,218 9,339 200,000 5,218 9,339 200,000
5 50 4,162 24,148 0 7,151 11,272 200,000 7,151 11,272 200,000
6 51 4,162 29,725 0 9,350 13,060 200,000 9,350 13,060 200,000
7 52 4,162 35,581 0 11,386 14,684 200,000 11,386 14,684 200,000
8 53 4,162 41,731 0 13,219 16,104 200,000 13,219 16,104 200,000
9 54 4,162 48,187 0 14,850 17,323 200,000 14,850 17,323 200,000
10 55 4,162 54,967 0 16,242 18,303 200,000 16,242 18,303 200,000
Total 41,620
11 56 4,162 62,085 0 17,604 19,253 200,000 17,604 19,253 200,000
12 57 4,162 69,559 0 18,714 19,951 200,000 18,714 19,951 200,000
13 58 4,162 77,408 0 19,551 20,375 200,000 19,551 20,375 200,000
14 59 4,162 85,648 0 20,092 20,504 200,000 20,092 20,504 200,000
15 60 4,162 94,300 0 20,336 20,336 200,000 20,336 20,336 200,000
16 61 4,162 103,386 0 19,843 19,843 200,000 19,843 19,843 200,000
17 62 4,162 112,925 0 18,957 18,957 200,000 18,957 18,957 200,000
18 63 4,162 122,941 0 17,624 17,624 200,000 17,624 17,624 200,000
19 64 4,162 133,459 0 15,785 15,785 200,000 15,785 15,785 200,000
20 65 4,162 144,502 0 13,354 13,354 200,000 13,354 13,354 200,000
Total 83,240
21 66 4,162 156,097 0 10,320 10,320 200,000 10,320 10,320 200,000
22 67 4,162 168,272 0 6,561 6,561 200,000 6,561 6,561 200,000
23 68 4,162 181,055 0 1,981 1,981 200,000 1,981 1,981 200,000
24 69 4,162 194,478 0 LAPSE LAPSE LAPSE LAPSE LAPSE LAPSE
25 70 4,162 208,572 0
26 71 4,162 223,371 0
27 72 4,162 238,910 0
28 73 4,162 255,225 0
29 74 4,162 272,356 0
--------
Total 120,698
<CAPTION>
CURRENT CHARGES
----------------------------------
0.00% (- 1.49% NET)
----------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- -------- --------
<S> <C> <C> <C>
1 573 2,655 200,000
2 3,036 5,486 200,000
3 4,030 8,151 200,000
4 6,511 10,632 200,000
5 8,859 12,980 200,000
6 11,467 15,176 200,000
7 13,928 17,225 200,000
8 16,289 19,174 200,000
9 18,510 20,983 200,000
10 20,573 22,634 200,000
Total
11 22,566 24,214 200,000
12 24,395 25,631 200,000
13 25,877 26,701 200,000
14 27,220 27,632 200,000
15 28,364 28,364 200,000
16 28,898 28,898 200,000
17 29,131 29,131 200,000
18 29,041 29,041 200,000
19 28,624 28,624 200,000
20 27,935 27,935 200,000
Total
21 26,992 26,992 200,000
22 25,721 25,721 200,000
23 24,051 24,051 200,000
24 21,837 21,837 200,000
25 18,904 18,904 200,000
26 15,254 15,254 200,000
27 10,680 10,680 200,000
28 5,180 5,180 200,000
29 LAPSE LAPSE LAPSE
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 73. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 73. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 80.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.88 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:03 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-24
<PAGE> 115
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MALE 45 STANDARD SMOKER DE OPT 1 0% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE SMOKER STANDARD AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 4,162.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
0.00% (-1.49% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 0 0 573 2,655 200,000
2 47 4,162 0 0 0 3,036 5,486 200,000
3 48 4,162 0 0 0 4,030 8,151 200,000
4 49 4,162 0 0 0 6,511 10,632 200,000
5 50 4,162 0 0 0 8,859 12,980 200,000
6 51 4,162 0 0 0 11,467 15,176 200,000
7 52 4,162 0 0 0 13,928 17,225 200,000
8 53 4,162 0 0 0 16,289 19,174 200,000
9 54 4,162 0 0 0 18,510 20,983 200,000
10 55 4,162 0 0 0 20,573 22,634 200,000
11 56 4,162 0 0 0 22,566 24,214 200,000
12 57 4,162 0 0 0 24,395 25,631 200,000
13 58 4,162 0 0 0 25,877 26,701 200,000
14 59 4,162 0 0 0 27,220 27,632 200,000
15 60 4,162 0 0 0 28,364 28,364 200,000
16 61 4,162 0 0 0 28,898 28,898 200,000
17 62 4,162 0 0 0 29,131 29,131 200,000
18 63 4,162 0 0 0 29,041 29,041 200,000
19 64 4,162 0 0 0 28,624 28,624 200,000
20 65 4,162 0 0 0 27,935 27,935 200,000
21 66 4,162 0 0 0 26,992 26,992 200,000
22 67 4,162 0 0 0 25,721 25,721 200,000
23 68 4,162 0 0 0 24,051 24,051 200,000
24 69 4,162 0 0 0 21,837 21,837 200,000
25 70 4,162 0 0 0 18,904 18,904 200,000
26 71 4,162 0 0 0 15,254 15,254 200,000
27 72 4,162 0 0 0 10,680 10,680 200,000
28 73 4,162 0 0 0 5,180 5,180 200,000
29 74 4,162 0 0 0 LAPSE LAPSE LAPSE
-------
Total 120,698
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 69. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 74.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.00 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:03 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-25
<PAGE> 116
<TABLE>
<S> <C> <C>
STANDARD LEDGER STATEMENT
FOR: MALE 45 STANDARD SMOKER DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE SMOKER STANDARD AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 4,162.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET)
-------------------------------- --------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- ------ -------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 4,370 0 373 2,655 200,000 766 2,848 200,000
2 47 4,162 8,959 0 2,572 5,023 200,000 3,120 5,570 200,000
3 48 4,162 13,777 0 3,136 7,258 200,000 4,195 8,316 200,000
4 49 4,162 18,836 0 5,218 9,339 200,000 6,945 11,066 200,000
5 50 4,162 24,148 0 7,151 11,272 200,000 9,704 13,825 200,000
6 51 4,162 29,725 0 9,350 13,060 200,000 12,889 16,598 200,000
7 52 4,162 35,581 0 11,386 14,684 200,000 16,070 19,367 200,000
8 53 4,162 41,731 0 13,219 16,104 200,000 19,208 22,093 200,000
9 54 4,162 48,187 0 14,850 17,323 200,000 22,306 24,779 200,000
10 55 4,162 54,967 0 16,242 18,303 200,000 25,326 27,387 200,000
Total 41,620
11 56 4,162 62,085 0 17,604 19,253 200,000 28,537 30,186 200,000
12 57 4,162 69,559 0 18,714 19,951 200,000 31,685 32,922 200,000
13 58 4,162 77,408 0 19,551 20,375 200,000 34,753 35,578 200,000
14 59 4,162 85,648 0 20,092 20,504 200,000 37,724 38,137 200,000
15 60 4,162 94,300 0 20,336 20,336 200,000 40,601 40,601 200,000
16 61 4,162 103,386 0 19,843 19,843 200,000 42,952 42,952 200,000
17 62 4,162 112,925 0 18,957 18,957 200,000 45,135 45,135 200,000
18 63 4,162 122,941 0 17,624 17,624 200,000 47,106 47,106 200,000
19 64 4,162 133,459 0 15,785 15,785 200,000 48,822 48,822 200,000
20 65 4,162 144,502 0 13,354 13,354 200,000 50,216 50,216 200,000
Total 83,240
21 66 4,162 156,097 0 10,320 10,320 200,000 51,304 51,304 200,000
22 67 4,162 168,272 0 6,561 6,561 200,000 51,976 51,976 200,000
23 68 4,162 181,055 0 1,981 1,981 200,000 52,162 52,162 200,000
24 69 4,162 194,478 0 LAPSE LAPSE LAPSE 51,835 51,835 200,000
25 70 4,162 208,572 0 50,866 50,866 200,000
26 71 4,162 223,371 0 49,107 49,107 200,000
27 72 4,162 238,910 0 46,396 46,396 200,000
28 73 4,162 255,225 0 42,461 42,461 200,000
29 74 4,162 272,356 0 37,007 37,007 200,000
30 75 4,162 290,344 0 29,682 29,682 200,000
Total 124,860
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- -------- --------
<S> <C> <C> <C>
1 766 2,848 200,000
2 3,597 6,048 200,000
3 5,143 9,264 200,000
4 8,359 12,481 200,000
5 11,626 15,747 200,000
6 15,339 19,049 200,000
7 19,095 22,392 200,000
8 22,941 25,826 200,000
9 26,846 29,319 200,000
10 30,796 32,857 200,000
Total
11 34,955 36,604 200,000
12 39,189 40,425 200,000
13 43,336 44,161 200,000
14 47,596 48,008 200,000
15 51,926 51,926 200,000
16 55,930 55,930 200,000
17 59,949 59,949 200,000
18 63,980 63,980 200,000
19 68,043 68,043 200,000
20 72,202 72,202 200,000
Total
21 76,522 76,522 200,000
22 80,959 80,959 200,000
23 85,495 85,495 200,000
24 90,076 90,076 200,000
25 94,640 94,640 200,000
26 99,248 99,248 200,000
27 103,852 103,852 200,000
28 108,528 108,528 200,000
29 113,234 113,234 200,000
30 117,960 117,960 200,000
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.00 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:04 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-26
<PAGE> 117
<TABLE>
<CAPTION>
GUARANTEED CHARGES
-----------------------------------------------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET)
--------------------------------- ---------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- ------- -------- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31 76 4,162 309,232 0 19,952 19,952 200,000
32 77 4,162 329,063 0 7,238 7,238 200,000
33 78 4,162 349,887 0 LAPSE LAPSE LAPSE
34 79 4,162 371,751 0
35 80 4,162 394,709 0
36 81 4,162 418,814 0
37 82 4,162 444,125 0
38 83 4,162 470,701 0
39 84 4,162 498,607 0
40 85 4,162 527,907 0
Total 166,480
41 86 4,162 558,673 0
42 87 4,162 590,976 0
43 88 4,162 624,895 0
44 89 4,162 660,510 0
45 90 4,162 697,906 0
46 91 4,162 737,171 0
47 92 4,162 778,400 0
48 93 4,162 821,690 0
49 94 4,162 867,144 0
50 95 4,162 914,872 0
--------
Total 208,100
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- -------- --------
<S> <C> <C> <C>
31 122,834 122,834 200,000
32 127,784 127,784 200,000
33 132,820 132,820 200,000
34 137,470 137,470 200,000
35 142,146 142,146 200,000
36 146,991 146,991 200,000
37 152,021 152,021 200,000
38 157,902 157,902 200,000
39 164,507 164,507 200,000
40 172,054 172,054 200,000
Total
41 180,995 180,995 200,000
42 191,867 191,867 201,460
43 203,527 203,527 213,704
44 215,470 215,470 226,243
45 227,678 227,678 239,062
46 240,096 240,096 252,100
47 253,429 253,429 263,566
48 267,859 267,859 275,895
49 283,596 283,596 289,268
50 300,893 300,893 303,902
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.00 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:04 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-27
<PAGE> 118
ALLOCATION OF VALUE
<TABLE>
<S> <C> <C>
FOR: MALE 45 STANDARD SMOKER DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE SMOKER STANDARD AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 4,162.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 0 0 766 2,848 200,000
2 47 4,162 0 0 0 3,597 6,048 200,000
3 48 4,162 0 0 0 5,143 9,264 200,000
4 49 4,162 0 0 0 8,359 12,481 200,000
5 50 4,162 0 0 0 11,626 15,747 200,000
6 51 4,162 0 0 0 15,339 19,049 200,000
7 52 4,162 0 0 0 19,095 22,392 200,000
8 53 4,162 0 0 0 22,941 25,826 200,000
9 54 4,162 0 0 0 26,846 29,319 200,000
10 55 4,162 0 0 0 30,796 32,857 200,000
11 56 4,162 0 0 0 34,955 36,604 200,000
12 57 4,162 0 0 0 39,189 40,425 200,000
13 58 4,162 0 0 0 43,336 44,161 200,000
14 59 4,162 0 0 0 47,596 48,008 200,000
15 60 4,162 0 0 0 51,926 51,926 200,000
16 61 4,162 0 0 0 55,930 55,930 200,000
17 62 4,162 0 0 0 59,949 59,949 200,000
18 63 4,162 0 0 0 63,980 63,980 200,000
19 64 4,162 0 0 0 68,043 68,043 200,000
20 65 4,162 0 0 0 72,202 72,202 200,000
21 66 4,162 0 0 0 76,522 76,522 200,000
22 67 4,162 0 0 0 80,959 80,959 200,000
23 68 4,162 0 0 0 85,495 85,495 200,000
24 69 4,162 0 0 0 90,076 90,076 200,000
25 70 4,162 0 0 0 94,640 94,640 200,000
26 71 4,162 0 0 0 99,248 99,248 200,000
27 72 4,162 0 0 0 103,852 103,852 200,000
28 73 4,162 0 0 0 108,528 108,528 200,000
29 74 4,162 0 0 0 113,234 113,234 200,000
30 75 4,162 0 0 0 117,960 117,960 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.00 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:04 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-28
<PAGE> 119
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
31 76 4,162 0 0 0 122,834 112,834 200,000
32 77 4,162 0 0 0 127,784 112,784 200,000
33 78 4,162 0 0 0 132,820 132,820 200,000
34 79 4,162 0 0 0 137,470 137,470 200,000
35 80 4,162 0 0 0 142,146 142,146 200,000
36 81 4,162 0 0 0 146,991 146,991 200,000
37 82 4,162 0 0 0 152,021 152,021 200,000
38 83 4,162 0 0 0 157,902 157,902 200,000
39 84 4,162 0 0 0 164,507 164,507 200,000
40 85 4,162 0 0 0 172,054 172,054 200,000
-------
Total 166,480
41 86 4,162 0 0 0 180,995 180,995 200,000
42 87 4,162 0 0 0 191,867 191,867 201,460
43 88 4,162 0 0 0 203,527 203,527 213,704
44 89 4,162 0 0 0 215,470 215,470 226,243
45 90 4,162 0 0 0 227,678 227,678 239,062
46 91 4,162 0 0 0 240,096 240,096 252,100
47 92 4,162 0 0 0 253,429 253,429 263,566
48 93 4,162 0 0 0 267,859 267,859 275,895
49 94 4,162 0 0 0 283,596 283,596 289,268
50 95 4,162 0 0 0 300,893 300,893 303,902
-------
Total 208,100
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 78. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.00 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:04 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-29
<PAGE> 120
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 45 STANDARD SMOKER DB OPT 1 12% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE SMOKER STANDARD AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 4,162.00 MONY LIFE OF AMERICA SPECIFIED AMOUNT
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (- 1.49% NET) 12.00% (10.42% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- ------ -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 4,370 0 573 2,655 200,000 960 3,042 200,000
2 47 4,162 8,959 0 2,572 5,023 200,000 3,691 6,142 200,000
3 48 4,162 13,777 0 3,136 7,258 200,000 5,347 9,468 200,000
4 49 4,162 18,836 0 5,218 9,339 200,000 8,904 13,026 200,000
5 50 4,162 24,148 0 7,151 11,272 200,000 12,725 16,846 200,000
6 51 4,162 29,725 0 9,350 13,060 200,000 17,257 20,966 200,000
7 52 4,162 35,581 0 11,386 14,684 200,000 22,106 25,403 200,000
8 53 4,162 41,731 0 13,219 16,104 200,000 27,273 30,158 200,000
9 54 4,162 48,187 0 14,850 17,323 200,000 32,807 35,280 200,000
10 55 4,162 54,967 0 16,242 18,303 200,000 38,722 40,783 200,000
Total 41,620
11 56 4,162 62,085 0 17,604 19,253 200,000 45,434 47,083 200,000
12 57 4,162 69,559 0 18,714 19,951 200,000 52,717 53,954 200,000
13 58 4,162 77,408 0 19,551 20,375 200,000 60,648 61,472 200,000
14 59 4,162 85,648 0 20,092 20,504 200,000 69,317 69,729 200,000
15 60 4,162 94,300 0 20,336 20,336 200,000 78,853 78,853 200,000
16 61 4,162 103,386 0 19,843 19,843 200,000 88,978 88,978 200,000
17 62 4,162 112,925 0 18,957 18,957 200,000 100,237 100,237 200,000
18 63 4,162 122,941 0 17,624 17,624 200,000 112,817 112,817 200,000
19 64 4,162 133,459 0 15,785 15,785 200,000 126,948 126,948 200,000
20 65 4,162 114,502 0 13,354 13,354 200,000 142,908 142,908 200,000
Total 83,240
21 66 4,162 156,097 0 10,320 10,320 200,000 161,147 161,147 200,000
22 67 4,162 168,272 0 6,561 6,561 200,000 181,799 181,799 216,341
23 68 4,162 181,055 0 1,981 1,981 200,000 204,513 204,513 241,326
24 69 4,162 194,478 0 LAPSE LAPSE LAPSE 229,486 229,486 268,499
25 70 4,162 208,572 0 256,936 256,936 298,046
26 71 4,162 223,371 0 287,105 287,105 330,171
27 72 4,162 238,910 0 320,462 320,462 362,122
28 73 4,162 255,225 0 357,400 357,400 396,714
29 74 4,162 272,356 0 398,397 398,397 434,253
30 75 4,162 290,344 0 444,031 444,031 475,113
Total 124,860
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ---------- ---------
<S> <C> <C> <C>
1 960 3,042 200,000
2 4,183 6,633 200,000
3 6,351 10,472 200,000
4 10,447 14,568 200,000
5 14,881 19,003 200,000
6 20,088 23,797 200,000
7 25,702 28,999 200,000
8 31,820 34,705 200,000
9 38,464 40,937 200,000
10 45,683 47,744 200,000
Total
11 53,821 55,470 200,000
12 62,765 64,001 200,000
13 72,483 73,308 200,000
14 83,267 83,680 200,000
15 95,230 95,230 200,000
16 108,138 108,138 200,000
17 122,562 122,562 200,000
18 138,746 138,746 200,000
19 156,992 156,992 200,000
20 177,515 177,515 216,568
Total
21 200,293 200,293 240,352
22 225,419 225,419 268,248
23 253,123 253,123 298,685
24 283,646 283,646 331,865
25 317,241 317,241 368,000
26 354,247 354,247 407,385
27 395,165 395,165 446,536
28 440,512 440,512 488,969
29 490,830 490,830 535,005
30 546,774 546,774 585,048
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract lapses at age 95. Assuming Current Charges and a Gross
Investment Return of 12.00%, contract lapses at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.00 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:05 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-30
<PAGE> 121
<TABLE>
<CAPTION>
GUARANTEED CHARGES
------------------------------------------------------------------
0.00% (- 1.49% NET) 12.00% (10.42% NET)
------------------------------------- ------------------------
(1) (2) (3) (4) (5) (6) (7) (8)
END NET PREMIUM NET VALUE BENEFIT VALUE
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE
- ---- --- -------- -------- --------- --------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31 76 4,162 309,232 0 494,985 494,985
32 77 4,162 329,063 0 551,063 551,063
33 78 4,162 349,887 0 612,750 612,750
34 79 4,162 371,751 0 680,580 680,580
35 80 4,162 394,709 0 755,119 755,119
36 81 4,162 418,814 0 836,961 836,961
37 82 4,162 444,125 0 926,746 926,746
38 83 4,162 470,701 0 1,025,122 1,025,122
39 84 4,162 498,607 0 1,132,771 1,132,771
40 85 4,162 527,907 0 1,250,435 1,250,435
--------
Total 166,480
41 86 4,162 558,673 0 1,378,916 1,378,916
42 87 4,162 590,976 0 1,519,102 1,519,102
43 88 4,162 624,895 0 1,671,954 1,671,954
44 89 4,162 660,510 0 1,838,358 1,838,358
45 90 4,162 697,906 0 2,019,364 2,019,364
46 91 4,162 737,171 0 2,216,060 2,216,060
47 92 4,162 778,400 0 2,436,327 2,436,327
48 93 4,162 821,690 0 2,684,138 2,684,138
49 94 4,162 867,144 0 2,964,133 2,964,133
50 95 4,162 914,872 0 3,282,329 3,282,329
--------
Total 208,100
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(9) (10) (11) (12)
END BENEFIT VALUE BENEFIT
OF PAYABLE ON FUND PAYABLE
YEAR AT DEATH SURRENDER VALUE AT DEATH
- ---- --------- --------- ---------- ---------
<S> <C> <C> <C> <C>
31 519,734 609,180 609,180 639,639
32 578,617 677,986 677,986 711,885
33 643,388 753,785 753,785 791,474
34 714,609 836,901 836,901 878,746
35 792,875 928,188 928,188 974,598
36 878,810 1,028,413 1,028,413 1,079,834
37 973,083 1,138,252 1,138,252 1,195,164
38 1,076,378 1,259,189 1,259,189 1,322,149
39 1,189,410 1,391,761 1.301,761 1,461,349
40 1,312,956 1,536,790 1,536,790 1,613,629
Total
41 1,447,861 1,695,378 1,695,378 1,780,146
42 1,595,057 1,868,356 1,868,356 1,961,773
43 1,755,552 2,056,970 2,056,970 2,159,818
44 1,930,276 2,262,325 2,262,325 2,375,441
45 2,120,332 2,485,627 2,485,627 2,609,908
46 2,326,863 2,727,707 2,727,707 2,864,092
47 2,533,780 2,998,404 2,998,404 3,118,340
48 2,764,663 3,302,730 3,302,730 3,401,812
49 3,023,416 3,646,756 3,646,756 3,719,691
50 3,315,152 4,037,926 4,037,926 4,078,306
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract lapses at age 95. Assuming Current Charges and a Gross
Investment Return of 12.00%, contract lapses at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.00 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:05 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-31
<PAGE> 122
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MALE 45 STANDARD SMOKER DB OPT 1 12% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE SMOKER STANDARD AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 4,162.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ----- --- ------- ----------- ---- ----- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 4,162 0 0 0 960 3,042 200,000
2 47 4,162 0 0 0 4,183 6,633 200,000
3 48 4,162 0 0 0 6,351 10,472 200,000
4 49 4,162 0 0 0 10,447 14,568 200,000
5 50 4,162 0 0 0 14,881 19,003 200,000
6 51 4,162 0 0 0 20,088 23,797 200,000
7 52 4,162 0 0 0 25,702 28,999 200,000
8 53 4,162 0 0 0 31,820 34,705 200,000
9 54 4,162 0 0 0 38,464 40,937 200,000
10 55 4,162 0 0 0 45,683 47,744 200,000
11 56 4,162 0 0 0 53,821 55,470 200,000
12 57 4,162 0 0 0 62,765 64,001 200,000
13 58 4,162 0 0 0 72,483 73,308 200,000
14 59 4,162 0 0 0 83,267 83,680 200,000
15 60 4,162 0 0 0 95,230 95,230 200,000
16 61 4,162 0 0 0 108,138 108,138 200,000
17 62 4,162 0 0 0 122,562 122,562 200,000
18 63 4,162 0 0 0 138,746 138,746 200,000
19 64 4,162 0 0 0 156,992 156,992 200,000
20 65 4,162 0 0 0 177,515 177,515 216,568
21 66 4,162 0 0 0 200,293 200,293 240,352
22 67 4,162 0 0 0 225,419 225,419 268,248
23 68 4,162 0 0 0 253,123 253,123 298,685
24 69 4,162 0 0 0 283,646 283,646 331,865
25 70 4,162 0 0 0 317,241 317,241 368,000
26 71 4,162 0 0 0 354,247 354,247 407,385
27 72 4,162 0 0 0 395,165 395,165 446,536
28 73 4,162 0 0 0 440,512 440,512 488,969
29 74 4,162 0 0 0 490,830 490,830 535,005
30 75 4,162 0 0 0 546,774 546,774 585,048
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.00 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:05 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-32
<PAGE> 123
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ----- --- ------- ----------- ---- ----- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
31 76 4,162 0 0 0 609,180 609,180 639,639
32 77 4,162 0 0 0 677,986 677,986 711,885
33 78 4,162 0 0 0 753,785 753,785 791,474
34 79 4,162 0 0 0 836,901 836,901 878,746
35 80 4,162 0 0 0 928,188 928,188 974,598
36 81 4,162 0 0 0 1,028,413 1,028,413 1,079,834
37 82 4,162 0 0 0 1,138,252 1,138,252 1,195,164
38 83 4,162 0 0 0 1,259,189 1,259,189 1,322,149
39 84 4,162 0 0 0 1,391,761 1,391,761 1,461,349
40 85 4,162 0 0 0 1,536,790 1,536,790 1,613,629
-------
Total 166,480
41 86 4,162 0 0 0 1,695,378 1,695,378 1,780,146
42 87 4,162 0 0 0 1,868,356 1,868,356 1,961,773
43 88 4,162 0 0 0 2,056,970 2,056,970 2,159,818
44 89 4,162 0 0 0 2,262,325 2,262,325 2,375,441
45 90 4,162 0 0 0 2,485,627 2,485,627 2,609,908
46 91 4,162 0 0 0 2,727,707 2,727,707 2,864,092
47 92 4,162 0 0 0 2,998,404 2,998,404 3,118,340
48 93 4,162 0 0 0 3,302,730 3,302,730 3,401,812
49 94 4,162 0 0 0 3,646,756 3,646,756 3,719,691
50 95 4,162 0 0 0 4,037,926 4,037,926 4,078,306
-------
Total 208,100
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 69. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $58,140.00 INITIAL GUIDELINE ANNUAL: $4,757.12 INITIAL TWO YEAR MINIMUM: $4,162.00
PREPARED ON: 01/04/95 05:05 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-33
<PAGE> 124
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT 2 0% GROSS MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 3,088.00 TO AGE 95 SPECIFIED AMOUNT PLUS FUND VALUE
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
0.00% (-1.49% NET) 0.00% (-1.49% NET)
-------------------------------- --------------------------------
(1) (2) (3) (6) (9)
NET PREMIUM NET (4) (5) BENEFIT (7) (8) BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ----- -------- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 3,242 0 310 2,113 202,113 310 2,113 202,113
2 47 3,088 6,647 0 1,506 4,112 204,112 1,506 4,112 204,112
3 48 3,088 10,222 0 2,716 6,032 206,032 2,716 6,032 206,032
4 49 3,088 13,975 0 4,537 7,853 207,853 4,537 7,853 207,853
5 50 3,088 17,916 0 6,260 9,576 209,576 6,620 9,576 209,576
6 51 3.088 22,055 0 8,216 11,201 211,201 8,216 11,201 211,201
7 52 3,088 26,400 0 10,054 12,706 212,706 10,054 12,706 212,706
8 53 3,088 30,962 0 11,773 14,094 214,094 11,773 14,094 214,094
9 54 3,088 35,753 0 13,353 15,343 215,343 13,353 15,343 215,343
10 55 3,088 40,783 0 14,795 16,453 216,453 14,795 16,453 216,453
Total 30,880
11 56 3,088 46,064 0 16,230 17,557 217,557 16,230 17,557 217,557
12 57 3,088 51,610 0 17,487 18,482 218,482 17,487 18,482 218,482
13 58 3,088 57,433 0 18,568 19,231 219,231 18,568 19,231 219,231
14 59 3,088 63,547 0 19,450 19,782 219,782 19,450 19,782 219,782
15 60 3,088 69,966 0 20,112 20,112 220,112 20,112 20,112 220,112
16 61 3,088 76,707 0 20,200 20,200 220,200 20,200 20,200 220,200
17 62 3,088 83,785 0 20,025 20,025 220,025 20,025 20,025 220,025
18 63 3,088 91,216 0 19,589 19,589 219,589 19,589 19,589 219,589
19 64 3,088 99,020 0 18,799 18,799 218,799 18,799 18,799 218,799
20 65 3,088 107,213 0 17,635 17,635 217,635 17,635 17,635 217,635
Total 61,760
21 66 3,088 115,816 0 16,114 16,114 216,114 16,114 16,114 216,114
22 67 3,088 124,849 0 14,155 14,155 214,155 14,155 14,155 214,155
23 68 3,088 134,334 0 11,714 11,714 211,714 11,714 11,714 211,714
24 69 3,088 144,293 0 8,749 8,749 208,749 8,749 8,749 208,749
25 70 3,088 154,750 0 5,240 5,240 205,240 5,240 5,240 205,240
26 71 3,088 165,730 0 1,098 1,098 201,098 1,098 1,098 201,098
27 72 3,088 177,259 0 LAPSE LAPSE LAPSE LAPSE LAPSE LAPSE
28 73 3,088 189,365 0
29 74 3,088 202,075 0
30 75 3,088 215,421 0
Total 92,640
31 76 3,088 229,435 0
32 77 3,088 244,149 0
33 78 3,088 259,599 0
34 79 3,088 275,821 0
-------
Total 104,992
<CAPTION>
CURRENT CHARGES
--------------------------------
0.00% (-1.49% NET)
--------------------------------
(12)
(10) (11) BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- ----- --------
<S> <C> <C> <C>
1 310 2,113 202,113
2 1,815 4,421 204,421
3 3,283 6,599 206,599
4 5,310 8,626 208,626
5 7,235 10,551 210,551
6 9,344 12,328 212,328
7 11,378 14,031 214,031
8 13,340 15,661 215,661
9 15,254 17,243 217,243
10 17,096 18,754 218,754
Total
11 18,938 20,264 220,264
12 20,573 21,568 221,568
13 22,101 22,764 222,764
14 23,544 23,876 223,876
15 24,929 24,929 224,929
16 25,900 25,900 225,900
17 26,694 26,694 226,694
18 27,266 27,266 227,266
19 27,689 27,689 227,689
20 27,964 27,964 227,964
Total
21 28,106 28,106 228,106
22 28,057 28,057 228,057
23 27,769 27,769 227,769
24 27,173 27,173 227,173
25 26,202 26,202 226,202
26 24,858 24,858 224,858
27 23,050 23,050 223,050
28 20,831 20,831 220,831
29 18,061 18,061 218,061
30 14,698 14,698 214,698
Total
31 10,772 10,772 210,772
32 6,121 6,121 206,121
33 634 634 200,634
34 LAPSE LAPSE LAPSE
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 72. Assuming current charges and a gross
investment return of 0.00%, contract lapses at age 79.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by a contract holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The surrender value, fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $8,016.26 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:05 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-34
<PAGE> 125
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT 2 0% GROSS MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 3,088.00 TO AGE 95 SPECIFIED AMOUNT PLUS FUND VALUE
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
0.00% (-1.49% NET)
--------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ----- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 310 2,113 202,113
2 47 3,088 0 0 0 1,815 4,421 204,421
3 48 3,088 0 0 0 3,283 6,599 206,599
4 49 3,088 0 0 0 5,310 8,626 208,626
5 50 3,088 0 0 0 7,235 10,551 210,551
6 51 3,088 0 0 0 9,344 12,328 212,328
7 52 3,088 0 0 0 11,378 14,031 214,031
8 53 3,088 0 0 0 13,340 15,661 215,661
9 54 3,088 0 0 0 15,254 17,243 217,243
10 55 3,088 0 0 0 17,096 18,754 218,754
11 56 3,088 0 0 0 18,938 20,264 220,264
12 57 3,088 0 0 0 20,573 21,568 221,568
13 58 3,088 0 0 0 22,101 22,764 222,764
14 59 3,088 0 0 0 23,544 23,876 223,876
15 60 3,088 0 0 0 24,929 24,929 224,929
16 61 3,088 0 0 0 25,900 25,900 225,900
17 62 3,088 0 0 0 26,694 26,694 226,694
18 63 3,088 0 0 0 27,266 27,266 227,266
19 64 3,088 0 0 0 27,689 27,689 227,689
20 65 3,088 0 0 0 27,964 27,964 227,964
21 66 3,088 0 0 0 28,106 28,106 228,106
22 67 3,088 0 0 0 28,057 28,057 228,057
23 68 3,088 0 0 0 27,769 27,769 227,769
24 69 3,088 0 0 0 27,173 27,173 227,173
25 70 3,088 0 0 0 26,202 26,202 226,202
26 71 3,088 0 0 0 24,858 24,858 224,858
27 72 3,088 0 0 0 23,050 23,050 223,050
28 73 3,088 0 0 0 20,831 20,831 220,831
29 74 3,088 0 0 0 18,061 18,061 218,061
30 75 3,088 0 0 0 14,698 14,698 214,698
31 76 3,088 0 0 0 10,772 10,772 210,772
32 77 3,088 0 0 0 6,121 6,121 206,121
33 78 3,088 0 0 0 634 634 200,634
34 79 3,088 0 0 0 LAPSE LAPSE LAPSE
-------
Total 104,992
</TABLE>
Assuming guaranteed charges and a gross investment return of 0.00%, contract
lapses at age 72. Assuming guaranteed charges and a gross investment return of
0.00%, contract lapses at age 72. Assuming current charges and a gross
investment return of 0.00%, contract lapses at age 79.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by a contract holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The surrender value, fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $8,016.26 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:06 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-35
<PAGE> 126
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT 2 6% GROSS MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 3,088.00 TO AGE 95 SPECIFIED AMOUNT PLUS FUND VALUE
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET)
-------------------------------- --------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- ------ -------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 3,242 0 310 2,113 202,113 458 2,261 202,261
2 47 3,088 6,647 0 1,506 4,112 204,112 1,931 4,537 204,537
3 48 3,088 10,222 0 2,716 6,032 206,032 3,549 6,865 206,865
4 49 3,088 13,975 0 4,537 7,853 207,853 5,907 9,223 209,223
5 50 3,088 17,916 0 6,260 9,576 209,576 8,297 11,613 211,613
6 51 3,088 22,055 0 8,216 11,201 211,201 11,051 14,036 214,036
7 52 3,088 26,400 0 10,054 12,706 212,706 13,816 16,468 216,468
8 53 3,088 30,962 0 11,773 14,094 214,094 16,590 18,911 218,911
9 54 3,088 35,753 0 13,353 15,343 215,343 19,351 21,340 221,340
10 55 3,088 40,783 0 14,795 16,453 216,453 22,097 23,755 223,755
Total 30,880
11 56 3,088 46,064 0 16,230 17,557 217,557 25,003 26,330 226,330
12 57 3,088 51,610 0 17,487 18,482 218,482 27,865 28,860 228,860
13 58 3,088 57,433 0 18,568 19,231 219,231 30,681 31,344 231,344
14 59 3,088 63,547 0 19,450 19,782 219,782 33,424 33,755 233,755
15 60 3,088 69,966 0 20,112 20,112 220,112 36,065 36,065 236,065
16 61 3,088 76,707 0 20,200 20,200 220,200 38,243 38,243 238,243
17 62 3,088 83,785 0 20,025 20,025 220,025 40,259 40,259 240,259
18 63 3,088 91,216 0 19,589 19,589 219,589 42,104 42,104 242,104
19 64 3,088 99,020 0 18,799 18,799 218,799 43,671 43,671 243,671
20 65 3,088 107,213 0 17,635 17,635 217,635 44,922 44,922 244,922
Total 61,760
21 66 3,088 115,816 0 16,114 16,114 216,114 45,858 45,858 245,858
22 67 3,088 124,849 0 14,155 14,155 214,155 46,371 46,371 246,371
23 68 3,088 134,334 0 11,714 11,714 211,714 46,393 46,393 246,393
24 69 3,088 144,293 0 8,749 8,749 208,749 45,848 45,848 245,848
25 70 3,088 154,750 0 5,240 5,240 205,240 44,686 44,686 244,686
26 71 3,088 165,730 0 1,098 1,098 201,098 42,775 42,775 242,775
27 72 3,088 177,259 0 LAPSE LAPSE LAPSE 39,857 39,857 239,857
28 73 3,088 189,365 0 36,005 36,005 236,005
29 74 3,088 202,075 0 30,950 30,950 230,950
30 75 3,088 215,421 0 24,261 24,461 224,261
Total 92,640
<CAPTION>
CURRENT CHARGES
--------------------------------
6.00% (4.46% NET)
--------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ------ --------
<S> <C> <C> <C>
1 458 2,261 202,261
2 2,250 4,856 204,856
3 4,153 7,469 207,469
4 6,759 10,075 210,075
5 9,408 12,724 212,724
6 12,384 15,369 215,369
7 15,429 18,082 218,082
8 18,546 20,868 220,868
9 21,763 23,753 223,753
10 25,059 26,717 226,717
11 28,557 29,883 229,883
12 32,015 33,010 233,010
13 35,531 36,194 236,194
14 39,131 39,463 239,463
15 42,845 42,845 242,845
16 46,323 46,323 246,323
17 49,801 49,801 249,801
18 53,231 53,231 253,231
19 56,684 56,684 256,684
20 60,162 60,162 260,162
21 63,681 63,681 263,681
22 67,178 67,178 267,178
23 70,603 70,603 270,603
24 73,878 73,878 273,878
25 76,922 76,922 276,922
26 79,725 79,725 279,725
27 82,173 82,173 282,173
28 84,301 84,301 284,301
29 85,943 85,943 285,943
30 87,026 87,026 287,026
</TABLE>
Assuming guaranteed charges and a gross investment return of 0.00%, contract
lapses at age 72. Assuming guaranteed charges and a gross investment return of
6.00%, contract lapses at age 78. Assuming current charges and a gross
investment return of 6.00%, contract lapses at age 87.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by a contract holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The surrender value, fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $8,016.26 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:06 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-36
<PAGE> 127
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET)
-------------------------------- --------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- ------ -------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31 76 3,088 229,435 0 16,366 16,366 216,366
32 77 3,088 244,149 0 6,513 6,513 206,513
33 78 3,088 259,599 0 LAPSE LAPSE LAPSE
34 79 3,088 275,821 0
35 80 3,088 292,855 0
36 81 3,088 310,740 0
37 82 3,088 329,519 0
38 83 3,088 349,237 0
39 84 3,088 369,942 0
40 85 3,088 391,681 0
Total 123,520
41 86 3,088 414,508 0
42 87 3,088 438,475 0
Total 129,696
<CAPTION>
CURRENT CHARGES
--------------------------------
6.00% (4.46% NET)
--------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ------ --------
<S> <C> <C> <C>
31 87,547 87,547 287,547
32 87,306 87,306 287,306
33 86,141 86,141 286,141
34 83,045 83,045 283,045
35 78,463 78,463 278,463
36 72,298 72,298 272,298
37 64,174 64,174 264,174
38 55,127 55,127 255,127
39 44,176 44,176 244,176
40 30,854 30,854 230,854
41 15,045 15,045 215,045
42 LAPSE LAPSE LAPSE
</TABLE>
Assuming guaranteed charges and a gross investment return of 0.00%, contract
lapses at age 72. Assuming guaranteed charges and a gross investment return of
6.00%, contract lapses at age 78. Assuming current charges and a gross
investment return of 6.00%, contract lapses at age 87.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by a contract holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The surrender value, fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $8,016.26 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:06 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-37
<PAGE> 128
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT 2 6% GROSS MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 3,088.00 TO AGE 95 SPECIFIED AMOUNT PLUS FUND
VALUE
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ---- --- ------- ----------- ---- ----- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 458 2,261 202,261
2 47 3,088 0 0 0 2,250 4,856 204,856
3 48 3,088 0 0 0 4,153 7,469 207,469
4 49 3,088 0 0 0 6,759 10,075 210,075
5 50 3,088 0 0 0 9,408 12,724 212,724
6 51 3,088 0 0 0 12,384 15,369 215,369
7 52 3,088 0 0 0 15,429 18,082 218,082
8 53 3,088 0 0 0 18,546 20,868 220,868
9 54 3,088 0 0 0 21,763 23,753 223,753
10 55 3,088 0 0 0 25,059 26,717 226,717
11 56 3,088 0 0 0 28,557 29,883 229,883
12 57 3,088 0 0 0 32,015 33,010 233,010
13 58 3,088 0 0 0 35,531 36,194 236,194
14 59 3,088 0 0 0 39,131 39,463 239,463
15 60 3,088 0 0 0 42,845 42,845 242,845
16 61 3,088 0 0 0 46,323 46,323 246,323
17 62 3,088 0 0 0 49,801 49,801 249,801
18 63 3,088 0 0 0 53,231 53,231 253,231
19 64 3,088 0 0 0 56,684 56,684 256,684
20 65 3,088 0 0 0 60,162 60,162 260,162
21 66 3,088 0 0 0 63,681 63,681 263,681
22 67 3,088 0 0 0 67,178 67,178 267,178
23 68 3,088 0 0 0 70,603 70,603 270,603
24 69 3,088 0 0 0 73,878 73,878 273,878
25 70 3,088 0 0 0 76,922 76,922 276,922
26 71 3,088 0 0 0 79,725 79,725 279,725
27 72 3,088 0 0 0 82,173 82,173 282,173
28 73 3,088 0 0 0 84,301 84,301 284,301
29 74 3,088 0 0 0 85,943 85,943 285,943
30 75 3,088 0 0 0 87,026 87,026 287,026
31 76 3,088 0 0 0 87,547 87,547 287,547
32 77 3,088 0 0 0 87,306 87,306 287,306
33 78 3,088 0 0 0 86,141 86,141 286,141
34 79 3,088 0 0 0 83,045 83,045 283,045
35 80 3,088 0 0 0 78,463 78,463 278,463
36 81 3,088 0 0 0 72,298 72,298 272,298
37 82 3,088 0 0 0 64,174 64,174 264,174
38 83 3,088 0 0 0 55,127 55,127 255,127
39 84 3,088 0 0 0 44,176 44,176 244,176
40 85 3,088 0 0 0 30,854 30,854 230,854
41 86 3,088 0 0 0 15,045 15,045 215,045
42 87 3,088 0 0 0 LAPSE LAPSE LAPSE
-------
Total 129,696
</TABLE>
Assuming guaranteed charges and a gross investment return of 0.00%, contract
lapses at age 72. Assuming guaranteed charges and a gross investment return of
6.00%, contract lapses at age 78. Assuming current charges and a gross
investment return of 6.00%, contract lapses at age 87.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the investment allocations by a contract holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The surrender value, fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $8,016.25 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:06 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-38
<PAGE> 129
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT 2 12% GROSS MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 3,088.00 TO AGE 95 SPECIFIED AMOUNT PLUS FUND VALUE
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
12.00% (10.42% NET)
0.00% (-1.49% NET) -------------------------------------
--------------------------------
(1) (2) (3) (6) (7) (9)
NET PREMIUM NET (4) (5) BENEFIT VALUE (8) BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ----- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 3,242 0 310 2,113 202,113 606 2,409 202,409
2 47 3,088 6,647 0 1,506 4,112 204,112 2,374 4,980 204,980
3 48 3,088 10,222 0 2,716 6,032 206,032 4,452 7,768 207,768
4 49 3,088 13,975 0 4,537 7,853 207,853 7,455 10,771 210,771
5 50 3,088 17,916 0 6,260 9,576 209,576 10,695 14,011 214,011
6 51 3,088 22,055 0 8,216 11,201 211,201 14,528 17,512 217,512
7 52 3,088 26,400 0 10,054 12,706 212,706 18,624 21,277 221,277
8 53 3,088 30,962 0 11,773 14,094 214,094 23,012 25,333 225,333
9 54 3,088 35,753 0 13,353 15,343 215,343 27,695 29,684 229,684
10 55 3,088 40,783 0 14,795 16,453 216,453 32,705 34,363 234,363
Total 30,880
11 56 3,088 46,064 0 16,230 17,557 217,557 38,320 39,646 239,646
12 57 3,088 51,610 0 17,487 18,482 218,482 44,337 45,332 245,332
13 58 3,088 57,433 0 18,568 19,231 219,231 50,800 51,463 251,463
14 59 3,088 63,547 0 19,450 19,782 219,782 57,732 58,064 258,064
15 60 3,088 69,966 0 20,112 20,112 220,112 65,160 65,160 265,160
16 61 3,088 76,707 0 20,200 20,200 220,200 72,782 72,782 272,782
17 62 3,088 83,785 0 20,025 20,025 220,025 80,959 80,959 280,959
18 63 3,088 91,216 0 19,589 19,589 219,589 89,755 89,755 289,755
19 64 3,088 99,020 0 18,799 18,799 218,799 99,135 99,135 299,135
20 65 3,088 107,213 0 17,635 17,635 217,635 109,138 109,138 309,138
Total 61,760
21 66 3,088 115,816 0 16,114 16,114 216,114 119,849 119,849 319,849
22 67 3,088 124,849 0 14,155 14,155 214,155 131,253 131,253 331,253
23 68 3,088 134,334 0 11,714 11,714 211,714 143,375 143,375 343,375
24 69 3,088 144,293 0 8,749 8,749 208,749 156,242 156,242 356,242
25 70 3,088 154,750 0 5,240 5,240 205,240 169,912 169,912 369,912
26 71 3,088 165,730 0 1,098 1,098 201,098 184,370 184,370 384,370
27 72 3,088 177,259 0 LAPSE LAPSE LAPSE 199,475 199,475 399,475
28 73 3,088 189,365 0 215,424 215,424 415,424
29 74 3,088 202,075 0 232,082 232,082 432,082
30 75 3,088 215,421 0 249,348 249,348 449,348
Total 92,640
31 76 3,088 229,435 0 267,187 267,187 467,187
32 77 3,088 244,149 0 285,587 285,587 485,587
33 78 3,088 259,599 0 304,532 304,532 504,532
34 79 3,088 275,821 0 324,006 324,006 524,006
35 80 3,088 292,855 0 343,965 343,965 543,965
36 81 3,088 310,740 0 364,286 364,286 564,286
37 82 3,088 329,519 0 384,804 384,804 584,804
38 83 3,088 349,237 0 405,211 405,211 605,211
39 84 3,088 369,942 0 425,189 425,189 625,189
40 85 3,088 391,681 0 444,413 444,413 644,413
Total 123,520
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(10) (12)
VALUE (11) BENEFIT
END OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- --------- ---------
<S> <C> <C> <C>
1 606 2,409 202,409
2 2,704 5,309 205,309
3 5,095 8,411 208,411
4 8,393 11,709 211,709
5 11,958 15,274 215,274
6 16,100 19,084 219,084
7 20,588 23,241 223,241
8 25,458 27,780 227,780
9 30,777 32,766 232,766
10 36,564 38,222 238,222
Total
11 43,059 44,386 244,386
12 50,028 51,023 251,023
13 57,624 58,287 258,287
14 65,940 66,272 266,272
15 75,082 75,082 275,082
16 84,782 84,782 284,782
17 95,369 95,369 295,369
18 106,889 106,889 306,889
19 119,521 119,521 319,521
20 133,386 133,386 333,386
Total
21 148,638 148,638 348,638
22 165,360 165,360 365,360
23 183,663 183,663 383,663
24 203,644 203,644 403,644
25 225,411 225,411 425,411
26 249,160 249,160 449,160
27 275,006 275,006 475,006
28 303,231 303,231 503,231
29 333,943 333,943 533,943
30 367,365 367,365 567,365
Total
31 403,818 403,818 603,818
32 443,459 443,459 643,459
33 486,509 486,509 686,509
34 532,352 532,352 732,352
35 581,853 581,853 781,853
36 635,388 635,388 835,388
37 693,096 693,096 893,096
38 756,602 756,602 956,602
39 825,577 825,577 1,025,577
40 900,240 900,240 1,110,240
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $8,016.26 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:07 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-39
<PAGE> 130
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
12.00% (10.42% NET)
0.00% (-1.49% NET) -------------------------------------
--------------------------------
(1) (2) (3) (6) (7) (9)
NET PREMIUM NET (4) (5) BENEFIT VALUE (8) BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ----- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,088 414,508 0 462,570 462,570 662,570
42 87 3,088 438,475 0 479,366 479,366 679,366
43 88 3,088 463,642 0 494,526 494,526 694,526
44 89 3,088 490,066 0 507,741 507,741 707,741
45 90 3,088 517,812 0 518,697 518,697 718,697
46 91 3,088 546,945 0 526,943 526,943 726,943
47 92 3,088 577,534 0 531,902 531,902 731,902
48 93 3,088 609,654 0 532,807 532,807 732,807
49 94 3,088 643,379 0 528,553 528,553 728,553
50 95 3,088 678,790 0 516,974 516,974 716,974
-------
Total 154,400
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(10) (12)
VALUE (11) BENEFIT
END OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- --------- ---------
<S> <C> <C> <C>
41 981,215 981,215 1,181,215
42 1,068,764 1,068,764 1,268,764
43 1,163,658 1,163,658 1,363,658
44 1,266,500 1,266,500 1,466,500
45 1,377,984 1,377,984 1,577,984
46 1,498,525 1,498,525 1,698,525
47 1,628,075 1,628,075 1,828,075
48 1,765,743 1,765,743 1,965,743
49 1,911,911 1,911,911 2,111,911
50 2,066,496 2,066,496 2,266,496
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $8,016.26 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:07 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-40
<PAGE> 131
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MALE 45 PREF N/S DB OPT 2--12% GROSS MONY EQUITYMASTER
MALE NON-SMOKER PREFERRED AGE 45 FLEXIBLE PREMIUM VARIABLE LIFE SPECIFIED AMOUNT = $200,000
1ST YR ANNUAL PREMIUM = 3,088.00 TO AGE 95 INITIAL DEATH BENEFIT =
MONY LIFE OF AMERICA SPECIFIED AMOUNT
DECLARED PREMIUMS PLUS FUND VALUE
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 46 3,088 0 0 0 606 2,409 202,409
2 47 3,088 0 0 0 2,704 5,309 205,309
3 48 3,088 0 0 0 5,095 8,411 208,411
4 49 3,088 0 0 0 8,393 11,709 211,709
5 50 3,088 0 0 0 11,958 15,274 215,274
6 51 3,088 0 0 0 16,100 19,084 219,084
7 52 3,088 0 0 0 20,588 23,241 223,241
8 53 3,088 0 0 0 25,458 27,780 227,780
9 54 3,088 0 0 0 30,777 32,766 232,766
10 55 3,088 0 0 0 36,564 38,222 238,222
11 56 3,088 0 0 0 43,059 44,386 244,386
12 57 3,088 0 0 0 50,028 51,023 251,023
13 58 3,088 0 0 0 57,624 58,287 258,287
14 59 3,088 0 0 0 65,940 66,272 266,272
15 60 3,088 0 0 0 75,082 75,082 275,082
16 61 3,088 0 0 0 84,782 84,782 284,782
17 62 3,088 0 0 0 95,369 95,369 295,369
18 63 3,088 0 0 0 106,889 106,889 306,889
19 64 3,088 0 0 0 119,521 119,521 319,521
20 65 3,088 0 0 0 133,386 133,386 333,386
21 66 3,088 0 0 0 148,638 148,638 348,638
22 67 3,088 0 0 0 165,360 165,360 365,360
23 68 3,088 0 0 0 183,663 183,663 383,663
24 69 3,088 0 0 0 203,644 203,644 403,644
25 70 3,088 0 0 0 255,411 225,411 425,411
26 71 3,088 0 0 0 249,160 249,160 449,160
27 72 3,088 0 0 0 275,006 275,006 475,006
28 73 3,088 0 0 0 303,231 303,231 503,231
29 74 3,088 0 0 0 333,943 333,943 533,943
30 75 3,088 0 0 0 367,365 367,365 567,365
31 76 3,088 0 0 0 403,818 403,818 603,818
32 77 3,088 0 0 0 443,459 443,459 643,459
33 78 3,088 0 0 0 486,509 486,509 686,509
34 79 3,088 0 0 0 532,352 532,352 732,352
35 80 3,088 0 0 0 581,853 581,853 781,853
36 81 3,088 0 0 0 635,388 635,388 835,388
37 82 3,088 0 0 0 693,096 693,096 893,096
38 83 3,088 0 0 0 756,602 756,602 956,602
39 84 3,088 0 0 0 825,577 825,577 1,025,577
40 85 3,088 0 0 0 900,240 900,240 1,100,240
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $8,016.26 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:07 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-41
<PAGE> 132
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 86 3,008 0 0 0 981,215 981,215 1,181,215
42 87 3,088 0 0 0 1,068,764 1,068,764 1,268,764
43 88 3,088 0 0 0 1,163,658 1,163,658 1,363,658
44 89 3,088 0 0 0 1,266,500 1,266,500 1,466,500
45 90 3,088 0 0 0 1,377,984 1,377,984 1,577,984
46 91 3,088 0 0 0 1,498,525 1,498,525 1,698,525
47 92 3,088 0 0 0 1,628,075 1,628,075 1,828,075
48 93 3,088 0 0 0 1,765,743 1,765,743 1,965,743
49 94 3,088 0 0 0 1,911,911 1,911,911 2,111,911
50 95 3,088 0 0 0 2,066,496 2,066,496 2,266,496
-------
Total 154,400
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 72. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $45,107.88 INITIAL GUIDELINE ANNUAL: $8,016.26 INITIAL TWO YEAR MINIMUM: $3,088.00
PREPARED ON: 01/04/95 05:07 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-42
<PAGE> 133
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 35 PREF N/S DB OPT 1 0% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 1,646.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
---------------------------------------------------------------------
0.00% (- 1.49% NET) 0.00% (- 1.49% NET)
-------------------------------- --------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ------ -------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 1,728 0 0 869 200,000 0 869 200,000
2 37 1,646 3,543 0 299 1,929 200,000 299 1,929 200,000
3 38 1,646 5,448 0 718 2,952 200,000 718 2,952 200,000
4 39 1,646 7,449 0 1,704 3,938 200,000 1,704 3,938 200,000
5 40 1,646 9,550 0 2,654 4,889 200,000 2,654 4,889 200,000
6 41 1,646 11,756 0 3,793 5,804 200,000 3,793 5,804 200,000
7 42 1,646 14,072 0 4,874 6,661 200,000 4,874 6,661 200,000
8 43 1,646 16,504 0 5,921 7,485 200,000 5,921 7,485 200,000
9 44 1,646 19,057 0 6,913 8,254 200,000 6,913 8,254 200,000
10 45 1,646 21,738 0 7,850 8,967 200,000 7,850 8,967 200,000
Total 16,460
11 46 1,646 26,554 0 8,816 9,710 200,000 8,816 9,710 200,000
12 47 1,646 27,510 0 9,732 10,402 200,000 9,732 10,402 200,000
13 48 1,646 30,613 0 10,598 11,045 200,000 10,598 11,045 200,000
14 49 1,646 33,872 0 11,393 11,617 200,000 11,393 11,617 200,000
15 50 1,646 37,294 0 12,118 12,118 200,000 12,118 12,118 200,000
16 51 1,646 40,887 0 12,549 12,549 200,000 12,549 12,549 200,000
17 52 1,646 44,660 0 12,889 12,889 200,000 12,889 12,889 200,000
18 53 1,646 48,621 0 13,138 13,138 200,000 13,138 13,138 200,000
19 54 1,646 52,781 0 13,275 13,275 200,000 13,275 13,275 200,000
20 55 1,646 57,148 0 13,300 13,300 200,000 13,300 13,300 200,000
Total 32,920
21 56 1,646 61,734 0 13,224 13,224 200,000 13,224 13,224 200,000
22 57 1,646 66,549 0 12,992 12,992 200,000 12,992 12,992 200,000
23 58 1,646 71,604 0 12,605 12,605 200,000 12,605 12,605 200,000
24 59 1,646 76,913 0 12,039 12,039 200,000 12,039 12,039 200,000
25 60 1,646 82,487 0 11,270 11,270 200,000 11,270 11,270 200,000
26 61 1,646 88,339 0 10,274 10,274 200,000 10,274 10,274 200,000
27 62 1,646 94,485 0 9,025 9,025 200,000 9,025 9,025 200,000
28 63 1,646 100,937 0 7,519 7,519 200,000 7,519 7,519 200,000
29 64 1,646 107,712 0 5,658 5,658 200,000 5,658 5,658 200,000
30 65 1,646 114,826 0 3,409 3,409 200,000 3,409 3,409 200,000
Total 49,380
31 66 1,646 122,296 0 713 713 200,000 713 713 200,000
32 67 1,646 130,139 0 LAPSE LAPSE LAPSE LAPSE LAPSE LAPSE
33 68 1,646 138,374 0
34 69 1,646 147,021 0
35 70 1,646 156,101 0
36 71 1,646 165,634 0
37 72 1,646 175,644 0
38 73 1,646 186,154 0
39 74 1,646 197,190 0
-------
Total 64,194
<CAPTION>
CURRENT CHARGES
--------------------------------
0.00% (- 1.49% NET)
--------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- ------ --------
<S> <C> <C> <C>
1 0 869 200,000
2 393 2,023 200,000
3 928 3,162 200,000
4 2,004 4,239 200,000
5 3,044 5,278 200,000
6 4,247 6,258 200,000
7 5,414 7,201 200,000
8 6,569 8,133 200,000
9 7,689 9,030 200,000
10 8,775 9,892 200,000
11 9,870 10,764 200,000
12 10,914 11,585 200,000
13 11,930 12,377 200,000
14 12,895 13,119 200,000
15 13,812 13,812 200,000
16 14,456 14,456 200,000
17 15,029 15,029 200,000
18 15,556 15,556 200,000
19 16,035 16,035 200,000
20 16,490 16,490 200,000
21 16,954 16,954 200,000
22 17,328 17,328 200,000
23 17,591 17,591 200,000
24 17,745 17,745 200,000
25 17,768 17,768 200,000
26 17,661 17,661 200,000
27 17,401 17,401 200,000
28 16,968 16,968 200,000
29 16,381 16,381 200,000
30 15,641 15,641 200,000
31 14,723 14,723 200,000
32 13,625 13,625 200,000
33 12,300 12,300 200,000
34 10,676 10,676 200,000
35 8,678 8,678 200,000
36 6,296 6,296 200,000
37 3,422 3,422 200,000
38 84 84 200,000
39 LAPSE LAPSE LAPSE
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 67. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 74.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.98 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:08 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-43
<PAGE> 134
<TABLE>
<S> <C> <C>
ALLOCATION OF VALUES
FOR: MALE 35 PREF N/S DB OPT 1 0% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 1,646.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
--------------------------------
0.00% (-1.49% NET)
--------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 0 0 869 200,000
2 37 1,646 0 0 0 393 2,023 200,000
3 38 1,646 0 0 0 928 3,162 200,000
4 39 1,646 0 0 0 2,004 4,239 200,000
5 40 1,646 0 0 0 3,044 5,278 200,000
6 41 1,646 0 0 0 4,247 6,258 200,000
7 42 1,646 0 0 0 5,414 7,201 200,000
8 43 1,646 0 0 0 6,569 8,133 200,000
9 44 1,646 0 0 0 7,689 9,030 200,000
10 45 1,646 0 0 0 8,775 9,892 200,000
11 46 1,646 0 0 0 9,870 10,764 200,000
12 47 1,646 0 0 0 10,914 11,585 200,000
13 48 1,646 0 0 0 11,930 12,377 200,000
14 49 1,646 0 0 0 12,895 13,119 200,000
15 50 1,646 0 0 0 13,812 13,812 200,000
16 51 1,646 0 0 0 14,456 14,456 200,000
17 52 1,646 0 0 0 15,029 15,029 200,000
18 53 1,646 0 0 0 15,556 15,556 200,000
19 54 1,646 0 0 0 16,035 16,035 200,000
20 55 1,646 0 0 0 16,490 16,490 200,000
21 56 1,646 0 0 0 16,954 16,954 200,000
22 57 1,646 0 0 0 17,328 17,328 200,000
23 58 1,646 0 0 0 17,591 17,591 200,000
24 59 1,646 0 0 0 17,745 17,745 200,000
25 60 1,646 0 0 0 17,768 17,768 200,000
26 61 1,646 0 0 0 17,661 17,661 200,000
27 62 1,646 0 0 0 17,401 17,401 200,000
28 63 1,646 0 0 0 16,968 16,968 200,000
29 64 1,646 0 0 0 16,381 16,381 200,000
30 65 1,646 0 0 0 15,641 15,641 200,000
31 66 1,646 0 0 0 14,723 14,723 200,000
32 67 1,646 0 0 0 13,625 13,625 200,000
33 68 1,646 0 0 0 12,300 12,300 200,000
34 69 1,646 0 0 0 10,676 10,676 200,000
35 70 1,646 0 0 0 8,678 8,678 200,000
36 71 1,646 0 0 0 6,296 6,296 200,000
37 72 1,646 0 0 0 3,422 3,422 200,000
38 73 1,646 0 0 0 84 84 200,000
39 74 1,646 0 0 0 LAPSE LAPSE LAPSE
-------
Total 64,194
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 67. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 74.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.98 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:08 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-44
<PAGE> 135
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 35 PREF N/S DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 1,646.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (6) (9)
NET PREMIUM NET (4) (5) BENEFIT (7) (8) BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ----- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 1,728 0 0 869 200,000 0 939 200,000
2 37 1,646 3,543 0 299 1,929 200,000 502 2,132 200,000
3 38 1,646 5,448 0 718 2,952 200,000 1,121 3,355 200,000
4 39 1,646 7,449 0 1,704 3,938 200,000 2,378 4,612 200,000
5 40 1,646 9,550 0 2,654 4,889 200,000 3,669 5,904 200,000
6 41 1,646 11,756 0 3,793 5,804 200,000 5,221 7,233 200,000
7 42 1,646 14,072 0 4,874 6,661 200,000 6,789 8,577 200,000
8 43 1,646 16,504 0 5,921 7,485 200,000 8,397 9,961 200,000
9 44 1,646 19,057 0 6,913 8,254 200,000 10,023 11,364 200,000
10 45 1,646 21,738 0 7,850 8,967 200,000 11,671 12,788 200,000
Total 16,460
11 46 1,646 24,554 0 8,816 9,710 200,000 13,449 14,343 200,000
12 47 1,646 27,510 0 9,732 10,402 200,000 15,265 15,935 200,000
13 48 1,646 30,613 0 10,598 11,045 200,000 17,121 17,568 200,000
14 49 1,646 33,872 0 11,393 11,617 200,000 18,998 19,221 200,000
15 50 1,646 37,294 0 12,118 12,118 200,000 20,898 20,898 200,000
16 51 1,646 40,887 0 12,549 12,549 200,000 22,601 22,601 200,000
17 52 1,646 44,660 0 12,889 12,889 200,000 24,311 24,311 200,000
18 53 1,646 48,621 0 13,138 13,138 200,000 26,029 26,029 200,000
19 54 1,646 52,781 0 13,275 13,275 200,000 27,738 27,738 200,000
20 55 1,646 57,148 0 13,300 13,300 200,000 29,438 29,438 200,000
Total 32,920
21 56 1,646 61,734 0 13,224 13,224 200,000 31,145 31,145 200,000
22 57 1,646 66,549 0 12,992 12,992 200,000 32,807 32,807 200,000
23 58 1,646 71,604 0 12,605 12,605 200,000 34,423 34,423 200,000
24 59 1,646 76,913 0 12,039 12,039 200,000 35,973 35,973 200,000
25 60 1,646 82,487 0 11,270 11,270 200,000 37,437 37,437 200,000
26 61 1,646 88,339 0 10,274 10,274 200,000 38,792 38,792 200,000
27 62 1,646 94,485 0 9,025 9,025 200,000 40,015 40,015 200,000
28 63 1,646 100,937 0 7,519 7,519 200,000 41,100 41,100 200,000
29 64 1,646 107,712 0 5,658 5,658 200,000 41,964 41,964 200,000
30 65 1,646 114,826 0 3,409 3,409 200,000 42,575 42,575 200,000
Total 49,380
31 66 1,646 122,296 0 713 713 200,000 42,879 42,879 200,000
32 67 1,646 130,139 0 LAPSE LAPSE LAPSE 42,835 42,835 200,000
33 68 1,646 138,374 0 42,379 42,379 200,000
34 69 1,646 147,021 0 41,436 41,436 200,000
35 70 1,646 156,101 0 39,943 39,943 200,000
36 71 1,646 165,634 0 37,765 37,765 200,000
37 72 1,646 175,644 0 34,642 34,642 200,000
38 73 1,646 186,154 0 30,564 30,564 200,000
39 74 1,646 197,190 0 25,213 25,213 200,000
Total 65,840
<CAPTION>
CURRENT CHARGES
-------------------------------------
6.00% (4.46% NET)
-------------------------------------
(12)
(10) (11) BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- --------- ---------
<S> <C> <C> <C>
1 0 939 200,000
2 599 2,229 200,000
3 1,343 3,578 200,000
4 2,706 4,941 200,000
5 4,109 6,343 200,000
6 5,753 7,764 200,000
7 7,439 9,227 200,000
8 9,194 10,758 200,000
9 10,997 12,338 200,000
10 12,852 13,969 200,000
Total
11 14,830 15,723 200,000
12 16,854 17,525 200,000
13 18,952 19,399 200,000
14 21,105 21,329 200,000
15 23,318 23,318 200,000
16 25,370 25,370 200,000
17 27,468 27,468 200,000
18 29,638 29,638 200,000
19 31,884 31,884 200,000
20 34,233 34,233 200,000
Total
21 36,725 36,725 200,000
22 39,274 39,274 200,000
23 41,867 41,867 200,000
24 44,508 44,508 200,000
25 47,185 47,185 200,000
26 49,905 49,905 200,000
27 52,654 52,654 200,000
28 55,423 55,423 200,000
29 58,234 58,234 200,000
30 61,096 61,096 200,000
Total
31 63,999 63,999 200,000
32 66,953 66,953 200,000
33 69,933 69,933 200,000
34 72,902 72,902 200,000
35 75,820 75,820 200,000
36 78,698 78,698 200,000
37 81,483 81,483 200,000
38 84,212 84,212 200,000
39 86,808 86,808 200,000
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 77. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 91.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.09 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:08 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-45
<PAGE> 136
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (-1.49% NET) 6.00% (4.46% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (6) (9)
NET PREMIUM NET (4) (5) BENEFIT (7) (8) BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ----- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 75 1,646 208,778 0 18,247 18,247 200,000
41 76 1,646 220,945 0 9,314 9,314 200,000
42 77 1,646 233,721 0 LAPSE LAPSE LAPSE
43 78 1,646 247,135 0
44 79 1,646 261,220 0
45 80 1,646 276,010 0
46 81 1,646 291,539 0
47 82 1,646 307,844 0
48 83 1,646 324,964 0
49 84 1,646 342,941 0
50 85 1,646 361,816 0
Total 82,300
51 86 1,646 381,635 0
52 87 1,646 402,445 0
53 88 1,646 424,296 0
54 89 1,646 447,239 0
55 90 1,646 471,329 0
56 91 1,646 496,624 0
-------
Total 92,176
<CAPTION>
CURRENT CHARGES
-------------------------------------
6.00% (4.46% NET)
-------------------------------------
(12)
(10) (11) BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- --------- ---------
<S> <C> <C> <C>
40 89,248 89,248 200,000
41 91,549 91,549 200,000
42 93,620 93,620 200,000
43 95,391 95,391 200,000
44 96,343 96,343 200,000
45 96,695 96,695 200,000
46 96,373 96,373 200,000
47 95,134 95,134 200,000
48 93,456 93,456 200,000
49 90,755 90,755 200,000
50 86,636 86,636 200,000
Total
51 80,810 80,810 200,000
52 72,627 72,627 200,000
53 61,523 61,523 200,000
54 46,554 46,554 200,000
55 26,426 26,426 200,000
56 LAPSE LAPSE LAPSE
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 77. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 91.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.09 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:08 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-46
<PAGE> 137
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MALE 35 PREF N/S DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 1,646.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 0 0 939 200,000
2 37 1,646 0 0 0 599 2,229 200,000
3 38 1,646 0 0 0 1,343 3,578 200,000
4 39 1,646 0 0 0 2,706 4,941 200,000
5 40 1,646 0 0 0 4,109 6,343 200,000
6 41 1,646 0 0 0 5,753 7,764 200,000
7 42 1,646 0 0 0 7,439 9,227 200,000
8 43 1,646 0 0 0 9,194 10,758 200,000
9 44 1,646 0 0 0 10,997 12,338 200,000
10 45 1,646 0 0 0 12,852 13,969 200,000
11 46 1,646 0 0 0 14,830 15,723 200,000
12 47 1,646 0 0 0 16,854 17,525 200,000
13 48 1,646 0 0 0 18,952 19,399 200,000
14 49 1,646 0 0 0 21,105 21,329 200,000
15 50 1,646 0 0 0 23,318 23,318 200,000
16 51 1,646 0 0 0 25,370 25,370 200,000
17 52 1,646 0 0 0 27,468 27,468 200,000
18 53 1,646 0 0 0 29,638 29,638 200,000
19 54 1,646 0 0 0 31,884 31,884 200,000
20 55 1,646 0 0 0 34,233 34,233 200,000
21 56 1,646 0 0 0 36,725 36,725 200,000
22 57 1,646 0 0 0 39,274 39,274 200,000
23 58 1,646 0 0 0 41,867 41,867 200,000
24 59 1,646 0 0 0 44,508 44,508 200,000
25 60 1,646 0 0 0 47,185 47,185 200,000
26 61 1,646 0 0 0 49,905 49,905 200,000
27 62 1,646 0 0 0 52,654 52,654 200,000
28 63 1,646 0 0 0 55,423 55,423 200,000
29 64 1,646 0 0 0 58,234 58,234 200,000
30 65 1,646 0 0 0 61,096 61,096 200,000
31 66 1,646 0 0 0 63,999 63,999 200,000
32 67 1,646 0 0 0 66,953 66,953 200,000
33 68 1,646 0 0 0 69,933 69,933 200,000
34 69 1,646 0 0 0 72,902 72,902 200,000
35 70 1,646 0 0 0 75,820 75,820 200,000
36 71 1,646 0 0 0 78,698 78,698 200,000
37 72 1,646 0 0 0 81,483 81,483 200,000
38 73 1,646 0 0 0 84,212 84,212 200,000
39 74 1,646 0 0 0 86,808 86,808 200,000
40 75 1,646 0 0 0 89,248 89,248 200,000
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 77. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 91.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.98 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:09 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-47
<PAGE> 138
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 91,549 91,549 200,000
42 77 1,646 0 0 0 93,620 93,620 200,000
43 78 1,646 0 0 0 95,391 95,391 200,000
44 79 1,646 0 0 0 96,343 96,343 200,000
45 80 1,646 0 0 0 96,695 96,695 200,000
46 81 1,646 0 0 0 96,373 96,373 200,000
47 82 1,646 0 0 0 95,134 95,134 200,000
48 83 1,646 0 0 0 93,456 93,456 200,000
49 84 1,646 0 0 0 90,755 90,755 200,000
50 85 1,646 0 0 0 86,636 86,636 200,000
51 86 1,646 0 0 0 80,810 80,810 200,000
52 87 1,646 0 0 0 72,627 72,627 200,000
53 88 1,646 0 0 0 61,523 61,523 200,000
54 89 1,646 0 0 0 46,554 46,554 200,000
55 90 1,646 0 0 0 26,426 26,426 200,000
56 91 1,646 0 0 0 LAPSE LAPSE LAPSE
-------
Total 92,176
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 77. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract lapses at age 91.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.98 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:09 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-48
<PAGE> 139
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 35 PREF N/S DB OPT 1 12% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 1,646.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (1.49% NET) 12.00% (10.42% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- -------- -------- --------- --------- ------ -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 1,728 0 0 869 200,000 0 1,010 200,000
2 37 1,646 3,543 0 299 1,929 200,000 713 2,343 200,000
3 38 1,646 5,448 0 718 2,952 200,000 1,558 3,793 200,000
4 39 1,646 7,449 0 1,704 3,938 200,000 3,138 5,372 200,000
5 40 1,646 9,550 0 2,654 4,889 200,000 4,861 7,095 200,000
6 41 1,646 11,756 0 3,793 5,804 200,000 6,967 8,978 200,000
7 42 1,646 14,072 0 4,874 6,661 200,000 9,226 11,013 200,000
8 43 1,646 16,504 0 5,921 7,485 200,000 11,678 13,242 200,000
9 44 1,646 19,057 0 6,913 8,254 200,000 14,323 15,664 200,000
10 45 1,646 21,738 0 7,850 8,967 200,000 17,181 18,299 200,000
Total 16,460
11 46 1,646 24,554 0 8,816 9,710 200,000 20,422 21,316 200,000
12 47 1,646 27,510 0 9,732 10,402 200,000 23,961 24,631 200,000
13 48 1,646 30,613 0 10,598 11,045 200,000 27,832 28,279 200,000
14 49 1,646 33,872 0 11,393 11,617 200,000 32,055 32,278 200,000
15 50 1,646 37,294 0 12,118 12,118 200,000 36,672 36,672 200,000
16 51 1,646 40,887 0 12,549 12,549 200,000 41,509 41,509 200,000
17 52 1,646 44,660 0 12,889 12,889 200,000 46,824 46,824 200,000
18 53 1,646 48,621 0 13,138 13,138 200,000 52,678 52,678 200,000
19 54 1,646 52,781 0 13,275 13,275 200,000 59,121 59,121 200,000
20 55 1,646 57,148 0 13,300 13,300 200,000 66,230 66,230 200,000
Total 32,920
21 56 1,646 61,734 0 13,224 13,224 200,000 74,114 74,114 200,000
22 57 1,646 66,549 0 12,992 12,992 200,000 82,822 82,822 200,000
23 58 1,646 71,604 0 12,605 12,605 200,000 92,470 92,470 200,000
24 59 1,646 76,913 0 12,039 12,039 200,000 103,174 103,174 200,000
25 60 1,646 82,487 0 11,270 11,270 200,000 115,074 115,074 200,000
26 61 1,646 88,339 0 10,274 10,274 200,000 128,332 128,332 200,000
27 62 1,646 94,485 0 9,025 9,025 200,000 143,142 143,142 200,000
28 63 1,646 100,937 0 7,519 7,519 200,000 159,742 159,742 201,274
29 64 1,646 107,712 0 5,658 5,658 200,000 178,218 178,218 220,990
30 65 1,646 114,826 0 3,409 3,409 200,000 198,621 198,621 242,318
Total 49,380
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- ---------- ---------
<S> <C> <C> <C>
1 0 1,010 200,000
2 813 2,443 200,000
3 1,794 4,028 200,000
4 3,497 5,731 200,000
5 5,355 7,590 200,000
6 7,587 9,598 200,000
7 10,007 11,795 200,000
8 12,662 14,226 200,000
9 15,552 16,893 200,000
10 18,704 19,821 200,000
Total
11 22,253 23,147 200,000
12 26,133 26,803 200,000
13 30,404 30,850 200,000
14 35,090 35,313 200,000
15 40,241 40,241 200,000
16 45,688 45,688 200,000
17 51,698 51,698 200,000
18 58,358 58,358 200,000
19 65,745 65,745 200,000
20 73,964 73,964 200,000
Total
21 83,149 83,149 200,000
22 93,334 93,334 200,000
23 104,633 104,633 200,000
24 117,188 117,188 200,000
25 131,153 131,153 200,000
26 146,716 146,716 200,000
27 164,066 164,066 210,005
28 183,289 183,289 230,944
29 204,565 204,565 253,661
30 228,122 228,122 278,309
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract lapses at age 95. Assuming Current Charges and a Gross
Investment Return of 12.00%, contract lapses at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.98 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:09 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-49
<PAGE> 140
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (1.49% NET) 12.00% (10.42% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- -------- -------- --------- --------- ------ -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31 66 1,646 122,296 0 713 713 200,000 221,157 221,157 265,389
32 67 1,646 130,139 0 LAPSE LAPSE LAPSE 246,006 246,006 292,747
33 68 1,646 138,374 0 273,398 273,398 322,610
34 69 1,646 147,021 0 303,591 303,591 355,201
35 70 1,646 156,101 0 336,874 336,874 390,773
36 71 1,646 165,634 0 373,552 373,552 429,585
37 72 1,646 175,644 0 414,092 414,092 467,924
38 73 1,646 186,154 0 459,019 459,019 509,512
39 74 1,646 197,190 0 508,855 508,855 554,651
40 75 1,646 208,778 0 564,235 564,235 603,731
Total 65,840
41 76 1,646 220,945 0 625,941 625,941 657,238
42 77 1,646 233,721 0 693,982 693,982 728,681
43 78 1,646 247,135 0 768,969 768,969 807,417
44 79 1,646 261,220 0 851,566 851,566 894,144
45 80 1,646 276,010 0 942,486 942,486 989,610
46 81 1,646 291,539 0 1,042,484 1,042,484 1,094,608
47 82 1,646 307,844 0 1,152,361 1,152,361 1,209,979
48 83 1,646 324,964 0 1,272,931 1,272,931 1,336,578
49 84 1,646 342,941 0 1,405,055 1,405,055 1,475,308
50 85 1,646 361,816 0 1,549,640 1,549,640 1,627,122
--------
Total 82,300
51 86 1,646 381,635 0 1,707,649 1,707,649 1,793,031
52 87 1,646 402,445 0 1,880,108 1,880,108 1,974,113
53 88 1,646 424,296 0 2,068,113 2,068,113 2,171,519
54 89 1,646 447,239 0 2,272,813 2,272,813 2,386,453
55 90 1,646 471,329 0 2,495,419 2,495,419 2,620,190
56 91 1,646 496,624 0 2,737,133 2,737,133 2,873,989
57 92 1,646 523,183 0 3,007,090 3,007,090 3,127,373
58 93 1,646 551,071 0 3,310,119 3,310,119 3,409,423
59 94 1,646 580,353 0 3,652,169 3,652,169 3,725,212
60 95 1,646 611,099 0 4,040,658 4,040,658 4,081,064
--------
Total 98,760
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- ---------- ---------
<S> <C> <C> <C>
31 254,208 254,208 305,049
32 283,068 283,068 336,850
33 314,987 314,987 371,684
34 350,274 350,274 409,820
35 389,268 389,268 451,551
36 432,371 432,371 497,226
37 480,101 480,101 542,514
38 533,026 533,026 591,656
39 591,737 591,737 644,994
40 656,946 656,946 702,932
Total
41 729,490 729,490 765,965
42 809,704 809,704 850,189
43 898,354 898,354 943,272
44 996,071 996,071 1,045,875
45 1,103,877 1,103,877 1,159,071
46 1,222,765 1,222,765 1,283,903
47 1,353,732 1,353,732 1,421,419
48 1,498,358 1,498,358 1,573,276
49 1,657,669 1,657,669 1,740,552
50 1,832,925 1,832,925 1,924,571
Total
51 2,025,633 2,025,633 2,126,915
52 2,237,204 2,237,204 2,349,064
53 2,469,377 2,469,377 2,592,846
54 2,723,884 2,723,884 2,860,079
55 3,002,575 3,002,575 3,152,704
56 3,307,126 3,307,126 3,472,482
57 3,645,329 3,645,329 3,791,142
58 4,021,712 4,021,712 4,142,364
59 4,443,288 4,443,288 4,532,154
60 4,918,907 4,918,907 4,968,096
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract lapses at age 95. Assuming Current Charges and a Gross
Investment Return of 12.00%, contract lapses at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.98 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:09 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-50
<PAGE> 141
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MALE 35 PREF N/S DB OPT 1 12% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 35 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 1,646.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 36 1,646 0 0 0 0 1,010 200,000
2 37 1,646 0 0 0 813 2,443 200,000
3 38 1,646 0 0 0 1,794 4,028 200,000
4 39 1,646 0 0 0 3,497 5,731 200,000
5 40 1,646 0 0 0 5,355 7,590 200,000
6 41 1,646 0 0 0 7,587 9,598 200,000
7 42 1,646 0 0 0 10,007 11,795 200,000
8 43 1,646 0 0 0 12,662 14,226 200,000
9 44 1,646 0 0 0 15,552 16,893 200,000
10 45 1,646 0 0 0 18,704 19,821 200,000
11 46 1,646 0 0 0 22,253 23,147 200,000
12 47 1,646 0 0 0 26,133 26,803 200,000
13 48 1,646 0 0 0 30,404 30,850 200,000
14 49 1,646 0 0 0 35,090 35,313 200,000
15 50 1,646 0 0 0 40,241 40,241 200,000
16 51 1,646 0 0 0 45,688 45,688 200,000
17 52 1,646 0 0 0 51,698 51,698 200,000
18 53 1,646 0 0 0 58,358 58,358 200,000
19 54 1,646 0 0 0 65,745 65,745 200,000
20 55 1,646 0 0 0 73,964 73,964 200,000
21 56 1,646 0 0 0 83,149 83,149 200,000
22 57 1,646 0 0 0 93,334 93,334 200,000
23 58 1,646 0 0 0 104,633 104,633 200,000
24 59 1,646 0 0 0 117,188 117,188 200,000
25 60 1,646 0 0 0 131,153 131,153 200,000
26 61 1,646 0 0 0 146,716 146,716 200,000
27 62 1,646 0 0 0 164,066 164,066 210,005
28 63 1,646 0 0 0 183,289 183,289 230,944
29 64 1,646 0 0 0 204,565 204,565 253,661
30 65 1,646 0 0 0 228,122 228,122 278,309
31 66 1,646 0 0 0 254,208 254,208 305,049
32 67 1,646 0 0 0 283,068 283,068 336,850
33 68 1,646 0 0 0 314,987 314,987 371,684
34 69 1,646 0 0 0 350,274 350,274 409,820
35 70 1,646 0 0 0 389,268 389,268 451,551
36 71 1,646 0 0 0 432,371 432,371 497,226
37 72 1,646 0 0 0 480,101 480,101 542,314
38 73 1,646 0 0 0 533,026 533,026 591,659
39 74 1,646 0 0 0 591,737 591,737 644,994
40 75 1,646 0 0 0 656,946 656,946 702,932
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.98 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:09 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-51
<PAGE> 142
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER FUND VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
41 76 1,646 0 0 0 729,490 729,490 765,965
42 77 1,646 0 0 0 809,704 809,704 850,189
43 78 1,646 0 0 0 898,354 898,354 943,272
44 79 1,646 0 0 0 996,071 996,071 1,045,875
45 80 1,646 0 0 0 1,103,877 1,103,877 1,159,071
46 81 1,646 0 0 0 1,222,765 1,222,765 1,283,903
47 82 1,646 0 0 0 1,353,732 1,353,732 1,421,419
48 83 1,646 0 0 0 1,498,358 1,498,358 1,573,276
49 84 1,646 0 0 0 1,657,669 1,657,669 1,740,552
50 85 1,646 0 0 0 1,832,925 1,832,925 1,924,571
51 86 1,646 0 0 0 2,025,633 2,025,633 2,126,915
52 87 1,646 0 0 0 2,237,204 2,237,204 2,349,064
53 88 1,646 0 0 0 2,469,377 2,469,377 2,592,846
54 89 1,646 0 0 0 2,723,884 2,723,884 2,860,079
55 90 1,646 0 0 0 3,002,575 3,002,575 3,152,704
56 91 1,646 0 0 0 3,307,126 3,307,126 3,472,482
57 92 1,646 0 0 0 3,645,329 3,645,329 3,791,142
58 93 1,646 0 0 0 4,021,712 4,021,712 4,142,364
59 94 1,646 0 0 0 4,443,288 4,443,288 4,532,154
60 95 1,646 0 0 0 4,918,907 4,918,907 4,968,096
-------
Total 98,760
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 67. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $29,091.76 INITIAL GUIDELINE ANNUAL: $2,161.98 INITIAL TWO YEAR MINIMUM: $1,646.00
PREPARED ON: 01/04/95 05:09 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-52
<PAGE> 143
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 55 PREF N/S DB OPT 1 0% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 5,010.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (-1.49% NET) 0.00% (-1.49% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (6) (9)
NET PREMIUM NET (4) (5) BENEFIT (7) (8) BENEFIT
END OF ANNUAL ACCUM'D LOANS/ VALUE ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- --------- ----- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 5,261 0 1,270 3,573 200,000 1,270 3,573 200,000
2 57 5,010 10,784 0 3,567 6,369 200,000 3,567 6,369 200,000
3 58 5,010 16,584 0 4,231 8,988 200,000 4,231 8,988 200,000
4 59 5,010 22,673 0 6,656 11,414 200,000 6,656 11,414 200,000
5 60 5,010 29,068 0 8,871 13,629 200,000 8,871 13,629 200,000
6 61 5,010 35,781 0 11,335 15,617 200,000 11,335 15,617 200,000
7 62 5,010 42,831 0 13,557 17,363 200,000 13,557 17,363 200,000
8 63 5,010 50,233 0 15,540 18,870 200,000 15,540 18,870 200,000
9 64 5,010 58,005 0 17,203 20,057 200,000 17,203 20,057 200,000
10 65 5,010 66,166 0 18,529 20,908 200,000 18,529 20,908 200,000
Total 50,100
11 66 5,010 74,735 0 19,696 21,599 200,000 19,696 21,599 200,000
12 67 5,010 83,732 0 20,468 21,895 200,000 20,468 21,895 200,000
13 68 5,010 93,179 0 20,799 21,751 200,000 20,799 21,751 200,000
14 69 5,010 103,099 0 20,639 21,115 200,000 20,639 21,115 200,000
15 70 5,010 113,514 0 19,954 19,954 200,000 19,954 19,954 200,000
16 71 5,010 124,450 0 18,164 18,164 200,000 18,164 18,164 200,000
17 72 5,010 135,933 0 15,518 15,518 200,000 15,518 15,518 200,000
18 73 5,010 147,990 0 12,080 12,080 200,000 12,080 12,080 200,000
19 74 5,010 160,650 0 7,591 7,591 200,000 7,591 7,591 200,000
20 75 5,010 173,943 0 1,800 1,800 200,000 1,800 1,800 200,000
Total 100,200
21 76 5,010 187,901 0 LAPSE LAPSE LAPSE LAPSE LAPSE LAPSE
22 77 5,010 202,557 0
23 78 5,010 217,945 0
24 79 5,010 234,103 0
25 80 5,010 251,068 0
26 81 5,010 268,882 0
27 82 5,010 287,587 0
28 83 5,010 307,227 0
29 84 5,010 327,849 0
-------
Total 145,290
<CAPTION>
CURRENT CHARGES
-------------------------------------
0.00% (-1.49% NET)
-------------------------------------
(12)
(10) (11) BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- --------- ---------
<S> <C> <C> <C>
1 1,270 3,573 200,000
2 4,509 7,311 200,000
3 6,114 10,871 200,000
4 9,460 14,218 200,000
5 12,580 17,337 200,000
6 15,913 20,195 200,000
7 19,163 22,969 200,000
8 22,332 25,662 200,000
9 25,401 28,256 200,000
10 28,255 30,633 200,000
Total
11 30,969 32,872 200,000
12 33,415 34,842 200,000
13 35,713 36,664 200,000
14 37,809 38,285 200,000
15 39,687 39,687 200,000
16 40,817 40,817 200,000
17 41,619 41,619 200,000
18 41,886 41,886 200,000
19 41,838 41,838 200,000
20 41,319 41,319 200,000
Total
21 40,418 40,418 200,000
22 38,884 38,884 200,000
23 36,591 36,591 200,000
24 32,722 32,722 200,000
25 27,590 27,590 200,000
26 21,047 21,047 200,000
27 12,660 12,660 200,000
28 3,249 3,249 200,000
29 LAPSE LAPSE LAPSE
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 84.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $69,009.20 INITIAL GUIDELINE ANNUAL: $6,002.06 INITIAL TWO YEAR MINIMUM: $5,010.00
PREPARED ON: 01/04/95 05:11 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-53
<PAGE> 144
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MALE 55 PREF N/S DB OPT 1 0% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 5,010.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
0.00% (-1.49% NET)
----------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 0 0 1,270 3,573 200,000
2 57 5,010 0 0 0 4,509 7,311 200,000
3 58 5,010 0 0 0 6,114 10,871 200,000
4 59 5,010 0 0 0 9,460 14,218 200,000
5 60 5,010 0 0 0 12,580 17,337 200,000
6 61 5,010 0 0 0 15,913 20,195 200,000
7 62 5,010 0 0 0 19,163 22,969 200,000
8 63 5,010 0 0 0 22,332 25,662 200,000
9 64 5,010 0 0 0 25,401 28,256 200,000
10 65 5,010 0 0 0 28,255 30,633 200,000
11 66 5,010 0 0 0 30,969 32,872 200,000
12 67 5,010 0 0 0 33,415 34,842 200,000
13 68 5,010 0 0 0 35,713 36,664 200,000
14 69 5,010 0 0 0 37,809 38,285 200,000
15 70 5,010 0 0 0 39,687 39,687 200,000
16 71 5,010 0 0 0 40,817 40,817 200,000
17 72 5,010 0 0 0 41,619 41,619 200,000
18 73 5,010 0 0 0 41,886 41,886 200,000
19 74 5,010 0 0 0 41,838 41,838 200,000
20 75 5,010 0 0 0 41,319 41,319 200,000
21 76 5,010 0 0 0 40,418 40,418 200,000
22 77 5,010 0 0 0 38,884 38,884 200,000
23 78 5,010 0 0 0 36,591 36,591 200,000
24 79 5,010 0 0 0 32,722 32,722 200,000
25 80 5,010 0 0 0 27,590 27,590 200,000
26 81 5,010 0 0 0 21,047 21,047 200,000
27 82 5,010 0 0 0 12,660 12,660 200,000
28 83 5,010 0 0 0 3,249 3,249 200,000
29 84 5,010 0 0 0 LAPSE LAPSE LAPSE
-------
Total 145,290
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
0.00%, contract lapses at age 76. Assuming Current Charges and a Gross
Investment Return of 0.00%, contract lapses at age 84.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
0.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $69,009.20 INITIAL GUIDELINE ANNUAL: $6,002.06 INITIAL TWO YEAR MINIMUM: $5,010.00
PREPARED ON: 01/04/95 05:11 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-54
<PAGE> 145
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 55 PREF N/S DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 5,010.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
----------------------------------------------------------------------
0.00% (-1.49% NET)
---------------------------- 6.00% (4.46% NET)
-------------------------------------
(1) (2) (3) (4) (6) (9)
NET PREMIUM NET VALUE (5) BENEFIT (7) (8) BENEFIT
END OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE VALUE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ------ --- ------- ------- --------- ----- ----- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 5,261 0 1,270 3,573 200,000 1,515 3,818 200,000
2 57 5,010 10,784 0 3,567 6,369 200,000 4,260 7,062 200,000
3 58 5,010 16,584 0 4,231 8,988 200,000 5,560 10,318 200,000
4 59 5,010 22,673 0 6,656 11,414 200,000 8,810 13,568 200,000
5 60 5,010 29,068 0 8,871 13,629 200,000 12,038 16,795 200,000
6 61 5,010 35,781 0 11,335 15,617 200,000 15,703 19,985 200,000
7 62 5,010 42,831 0 13,557 17,363 200,000 19,314 23,120 200,000
8 63 5,010 50,233 0 15,540 18,870 200,000 22,876 26,206 200,000
9 64 5,010 58,005 0 17,203 20,057 200,000 26,310 29,165 200,000
10 65 5,010 66,166 0 18,529 20,908 200,000 29,599 31,978 200,000
Total 50,100
11 66 5,010 74,735 0 19,696 21,599 200,000 32,994 34,897 200,000
12 67 5,010 83,732 0 20,468 21,895 200,000 36,219 37,647 200,000
13 68 5,010 93,179 0 20,799 21,751 200,000 39,235 40,187 200,000
14 69 5,010 103,099 0 20,639 21,115 200,000 42,001 42,476 200,000
15 70 5,010 113,514 0 19,954 19,954 200,000 44,489 44,489 200,000
16 71 5,010 124,450 0 18,164 18,164 200,000 46,136 46,136 200,000
17 72 5,010 135,933 0 15,518 15,518 200,000 47,230 47,230 200,000
18 73 5,010 147,990 0 12,080 12,080 200,000 47,821 47,821 200,000
19 74 5,010 160,650 0 7,591 7,591 200,000 47,699 47,699 200,000
20 75 5,010 173,943 0 1,800 1,800 200,000 46,657 46,657 200,000
Total 100,200
21 76 5,010 187,901 0 LAPSE LAPSE LAPSE 44,617 44,617 200,000
22 77 5,010 202,557 0 41,269 41,269 200,000
23 78 5,010 217,945 0 36,345 36,345 200,000
24 79 5,010 234,103 0 29,507 29,507 200,000
25 80 5,010 251,068 0 20,294 20,294 200,000
26 81 5,010 268,882 0 8,039 8,039 200,000
27 82 5,010 287,587 0 LAPSE LAPSE LAPSE
28 83 5,010 307,227 0
29 84 5,010 327,849 0
30 85 5,010 349,502 0
Total 150,300
31 86 5,010 372,237 0
32 87 5,010 396,109 0
33 88 5,010 421,175 0
34 89 5,010 447,495 0
35 90 5,010 475,130 0
36 91 5,010 504,147 0
37 92 5,010 534,615 0
38 93 5,010 566,606 0
39 94 5,010 600,197 0
40 95 5,010 635,467 0
-------
Total 200,400
<CAPTION>
CURRENT CHARGES
-------------------------------------
6.00% (4.46% NET)
-------------------------------------
(12)
(10) (11) BENEFIT
END OF VALUE ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ------ --------- --------- ---------
<S> <C> <C> <C>
1 1,515 3,818 200,000
2 5,230 8,032 200,000
3 7,555 12,312 200,000
4 11,866 16,623 200,000
5 16,195 20,953 200,000
6 20,986 25,268 200,000
7 25,942 29,748 200,000
8 31,075 34,405 200,000
9 36,378 39,233 200,000
10 41,750 41,750 200,000
Total
11 47,377 49,280 200,000
12 53,077 54,504 200,000
13 58,977 59,928 200,000
14 65,050 65,526 200,000
15 71,309 71,309 200,000
16 77,259 77,259 200,000
17 83,369 83,369 200,000
18 89,524 89,524 200,000
19 95,930 95,930 200,000
20 102,535 102,535 200,000
Total
21 109,506 109,506 200,000
22 116,735 116,735 200,000
23 124,254 124,254 200,000
24 131,819 131,819 200,000
25 139,752 139,752 200,000
26 148,197 148,197 200,000
27 157,263 157,263 200,000
28 167,395 167,395 200,000
29 178,665 178,665 200,000
30 191,373 191,373 200,942
Total
31 204,906 204,906 215,151
32 218,923 218,923 229,869
33 233,433 233,433 245,105
34 248,430 248,430 260,852
35 263,907 263,907 277,102
36 279,828 279,828 293,819
37 296,648 296,648 308,514
38 314,474 314,474 323,908
39 333,561 333,561 340,232
40 354,226 354,226 357,769
Total
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 82. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $69,009.20 INITIAL GUIDELINE ANNUAL: $6,002.06 INITIAL TWO YEAR MINIMUM: $5,010.00
PREPARED ON: 01/04/95 05:11 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-55
<PAGE> 146
ALLOCATION OF VALUES
<TABLE>
<S> <C> <C>
FOR: MALE 55 PREF N/S DB OPT 1 6% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 5,010.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
----------------------------------
6.00% (4.46% NET)
----------------------------------
UNSCHEDULED BENEFIT
END OF PREMIUM/ NET TOTAL VALUE ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ------ --- ------- ----------- ---- ----- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 0 0 1,515 3,818 200,000
2 57 5,010 0 0 0 5,230 8,032 200,000
3 58 5,010 0 0 0 7,555 12,312 200,000
4 59 5,010 0 0 0 11,866 16,623 200,000
5 60 5,010 0 0 0 16,195 20,953 200,000
6 61 5,010 0 0 0 20,986 25,268 200,000
7 62 5,010 0 0 0 25,942 29,748 200,000
8 63 5,010 0 0 0 31,075 34,405 200,000
9 64 5,010 0 0 0 36,378 39,233 200,000
10 65 5,010 0 0 0 41,750 44,129 200,000
11 66 5,010 0 0 0 47,377 49,280 200,000
12 67 5,010 0 0 0 53,077 54,504 200,000
13 68 5,010 0 0 0 58,977 59,928 200,000
14 69 5,010 0 0 0 65,050 65,526 200,000
15 70 5,010 0 0 0 71,309 71,309 200,000
16 71 5,010 0 0 0 77,259 77,259 200,000
17 72 5,010 0 0 0 83,369 83,369 200,000
18 73 5,010 0 0 0 89,524 89,524 200,000
19 74 5,010 0 0 0 95,930 95,930 200,000
20 75 5,010 0 0 0 102,535 102,535 200,000
21 76 5,010 0 0 0 109,506 109,506 200,000
22 77 5,010 0 0 0 116,735 116,735 200,000
23 78 5,010 0 0 0 124,254 124,254 200,000
24 79 5,010 0 0 0 131,819 131,819 200,000
25 80 5,010 0 0 0 139,752 139,752 200,000
26 81 5,010 0 0 0 148,197 148,197 200,000
27 82 5,010 0 0 0 157,263 157,263 200,000
28 83 5,010 0 0 0 167,395 167,395 200,000
29 84 5,010 0 0 0 178,665 178,665 200,000
30 85 5,010 0 0 0 191,373 191,373 200,942
31 86 5,010 0 0 0 204,906 204,906 215,151
32 87 5,010 0 0 0 218,923 218,923 229,869
33 88 5,010 0 0 0 233,433 233,433 245,105
34 89 5,010 0 0 0 248,430 248,430 260,852
35 90 5,010 0 0 0 263,907 263,907 277,102
36 91 5,010 0 0 0 279,828 279,828 293,819
37 92 5,010 0 0 0 296,648 296,648 308,514
38 93 5,010 0 0 0 314,474 314,474 323,908
39 94 5,010 0 0 0 333,561 333,561 340,232
40 95 5,010 0 0 0 354,226 354,226 357,769
-------
Total 200,400
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
6.00%, contract lapses at age 82. Assuming Current Charges and a Gross
Investment Return of 6.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
6.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $69,009.20 INITIAL GUIDELINE ANNUAL: $6,002.06 INITIAL TWO YEAR MINIMUM: $5,010.00
PREPARED ON: 01/04/95 05:11 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT PROSPECTUS AND
SUPPLEMENTAL FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-56
<PAGE> 147
STANDARD LEDGER STATEMENT
<TABLE>
<S> <C> <C>
FOR: MALE 55 PREF N/S DB OPT 1 12% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 5,010.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
GUARANTEED CHARGES
--------------------------------------------------------------------------
0.00% (- 1.49% NET) 12.00% (10.42% NET)
-------------------------------- -------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8) (9)
END NET PREMIUM NET VALUE BENEFIT VALUE BENEFIT
OF ANNUAL ACCUM'D LOANS/ ON FUND PAYABLE ON FUND PAYABLE
YEAR AGE OUTLAY AT 5% SURRENDER SURRENDER VALUE AT DEATH SURRENDER VALUE AT DEATH
- ---- --- -------- -------- --------- --------- ------ -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 5,261 0 1,270 3,573 200,000 1,760 4,063 200,000
2 57 5,010 10,784 0 3,567 6,369 200,000 4,985 7,786 200,000
3 58 5,010 16,584 0 4,231 8,988 200,000 7,009 11,766 200,000
4 59 5,010 22,673 0 6,656 11,414 200,000 11,258 16,015 200,000
5 60 5,010 29,068 0 8,871 13,629 200,000 15,794 20,551 200,000
6 61 5,010 35,781 0 11,335 15,617 200,000 21,113 25,395 200,000
7 62 5,010 42,831 0 13,557 17,363 200,000 26,768 30,574 200,000
8 63 5,010 50,233 0 15,540 18,870 200,000 32,813 36,143 200,000
9 64 5,010 58,005 0 17,203 20,057 200,000 39,229 42,084 200,000
10 65 5,010 66,166 0 18,529 20,908 200,000 46,066 48,443 200,000
Total 50,100
11 66 5,010 74,735 0 19,696 21,599 200,000 53,767 55,670 200,000
12 67 5,010 83,732 0 20,468 21,895 200,000 62,095 63,522 200,000
13 68 5,010 93,179 0 20,799 21,751 200,000 71,141 72,092 200,000
14 69 5,010 103,099 0 20,639 21,115 200,000 81,019 81,495 200,000
15 70 5,010 113,514 0 19,954 19,954 200,000 91,891 91,891 200,000
16 71 5,010 124,450 0 18,164 18,164 200,000 103,435 103,435 200,000
17 72 5,010 135,933 0 15,518 15,518 200,000 116,280 116,280 200,000
18 73 5,010 147,990 0 12,080 12,080 200,000 130,799 130,799 200,000
19 74 5,010 160,650 0 7,591 7,591 200,000 147,307 147,307 200,000
20 75 5,010 173,943 0 1,800 1,800 200,000 166,269 166,269 200,000
Total 100,200
21 76 5,010 187,901 0 LAPSE LAPSE LAPSE 188,449 188,449 200,000
22 77 5,010 202,557 0 213,707 213,707 224,392
23 78 5,010 217,945 0 241,558 241,558 253,636
24 79 5,010 234,103 0 272,253 272,253 285,865
25 80 5,010 251,068 0 306,057 306,057 321,360
26 81 5,010 268,882 0 343,256 343,256 360,419
27 82 5,010 287,587 0 384,151 384,151 403,359
28 83 5,010 307,227 0 429,051 429,051 450,504
29 84 5,010 327,849 0 478,282 478,282 502,197
30 85 5,010 349,502 0 532,188 532,188 558,797
Total 150,300
31 86 5,010 372,237 0 591,133 591,133 620,689
32 87 5,010 396,109 0 655,504 655,504 688,279
33 88 5,010 421,175 0 725,716 725,716 762,002
34 89 5,010 447,495 0 802,203 802,203 842,313
35 90 5,010 475,130 0 885,422 885,422 929,693
36 91 5,010 504,147 0 975,828 975,828 1,024,619
37 92 5,010 534,615 0 1,076,717 1,076,717 1,119,786
38 93 5,010 566,606 0 1,189,873 1,189,873 1,225,569
39 94 5,010 600,197 0 1,317,489 1,317,489 1,343,839
40 95 5,010 635,467 0 1,462,306 1,462,306 1,476,929
--------
Total 200,400
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
(10) (11) (12)
END VALUE BENEFIT
OF ON FUND PAYABLE
YEAR SURRENDER VALUE AT DEATH
- ---- --------- ---------- ---------
<S> <C> <C> <C>
1 1,760 4,063 200,000
2 5,982 8,784 200,000
3 9,116 13,874 200,000
4 14,578 19,336 200,000
5 20,441 25,198 200,000
6 27,195 31,477 200,000
7 34,596 38,402 200,000
8 42,722 46,052 200,000
9 51,642 54,497 200,000
10 61,350 63,728 200,000
11 72,282 74,185 200,000
12 84,298 85,726 200,000
13 97,656 98,608 200,000
14 112,517 112,993 200,000
15 129,104 129,104 200,000
16 147,191 147,191 200,000
17 167,569 167,569 200,000
18 190,541 190,541 211,500
19 216,097 216,097 235,546
20 244,471 244,471 261,584
21 276,129 276,129 289,936
22 311,142 311,142 326,699
23 349,847 349,847 367,339
24 392,529 392,529 412,156
25 439,632 439,632 461,614
26 491,592 491,592 516,171
27 548,847 548,847 576,289
28 612,079 612,079 642,683
29 681,747 681,747 715,835
30 758,407 758,407 796,328
31 842,720 842,720 884,857
32 935,310 935,310 982,075
33 1,036,939 1,036,939 1,088,786
34 1,148,370 1,148,370 1,205,789
35 1,270,417 1,270,417 1,333,938
36 1,403,822 1,403,822 1,474,013
37 1,551,933 1,551,933 1,614,010
38 1,716,721 1,716,721 1,768,223
39 1,901,232 1,901,232 1,939,257
40 2,109,307 2,109,307 2,130,400
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract matures at anniversary at age 95. Assuming Current Charges and
a Gross Investment Return of 12.00%, contract matures at anniversary at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $69,009.20 INITIAL GUIDELINE ANNUAL: $6,002.06 INITIAL TWO YEAR MINIMUM: $5,010.00
PREPARED ON: 01/04/95 05:12 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-57
<PAGE> 148
ALLOCATION OF VALUE
<TABLE>
<S> <C> <C>
FOR: MALE 55 PREF N/S DB OPT 1 12% MONY EQUITYMASTER SPECIFIED AMOUNT = $200,000
MALE NON-SMOKER PREFERRED AGE 55 FLEXIBLE PREMIUM VARIABLE LIFE INITIAL DEATH BENEFIT =
1ST YR ANNUAL PREMIUM = 5,010.00 TO AGE 95 SPECIFIED AMOUNT
MONY LIFE OF AMERICA
DECLARED PREMIUMS
</TABLE>
<TABLE>
<CAPTION>
CURRENT CHARGES
-------------------------------------
12.00% (10.42% NET)
-------------------------------------
END UNSCHEDULED VALUE BENEFIT
OF PREMIUM/ NET TOTAL ON FUND PAYABLE
YEAR AGE PREMIUM SURRENDER LOAN LOAN SURRENDER VALUE AT DEATH
- ----- --- ------- ----------- ---- ----- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 56 5,010 0 0 0 1,760 4,063 200,000
2 57 5,010 0 0 0 5,982 8,784 200,000
3 58 5,010 0 0 0 9,116 13,874 200,000
4 59 5,010 0 0 0 14,578 19,336 200,000
5 60 5,010 0 0 0 20,441 25,198 200,000
6 61 5,010 0 0 0 27,195 31,477 200,000
7 62 5,010 0 0 0 34,596 38,402 200,000
8 63 5,010 0 0 0 42,722 46,052 200,000
9 64 5,010 0 0 0 51,642 54,497 200,000
10 65 5,010 0 0 0 61,350 63,728 200,000
11 66 5,010 0 0 0 72,282 74,185 200,000
12 67 5,010 0 0 0 84,298 85,726 200,000
13 68 5,010 0 0 0 97,656 98,608 200,000
14 69 5,010 0 0 0 112,517 112,993 200,000
15 70 5,010 0 0 0 129,104 129,104 200,000
16 71 5,010 0 0 0 147,191 147,191 200,000
17 72 5,010 0 0 0 167,569 167,569 200,000
18 73 5,010 0 0 0 190,541 190,541 211,500
19 74 5,010 0 0 0 216,097 216,097 235,546
20 75 5,010 0 0 0 244,471 244,471 261,584
21 76 5,010 0 0 0 276,129 276,129 289,936
22 77 5,010 0 0 0 311,142 311,142 326,699
23 78 5,010 0 0 0 349,847 349,847 367,339
24 79 5,010 0 0 0 392,529 392,529 412,156
25 80 5,010 0 0 0 439,632 439,632 461,614
26 81 5,010 0 0 0 491,592 491,592 516,171
27 82 5,010 0 0 0 548,847 548,847 576,289
28 83 5,010 0 0 0 612,079 612,079 642,683
29 84 5,010 0 0 0 681,747 681,747 715,835
30 85 5,010 0 0 0 758,407 758,407 796,328
31 86 5,010 0 0 0 842,720 842,720 884,857
32 87 5,010 0 0 0 935,310 935,310 982,075
33 88 5,010 0 0 0 1,036,939 1,036,939 1,088,786
34 89 5,010 0 0 0 1,148,370 1,148,370 1,205,789
35 90 5,010 0 0 0 1,270,417 1,270,417 1,333,938
36 91 5,010 0 0 0 1,403,822 1,403,822 1,494,013
37 92 5,010 0 0 0 1,551,933 1,551,933 1,614,010
38 93 5,010 0 0 0 1,716,721 1,716,721 1,768,223
39 94 5,010 0 0 0 1,901,232 1,901,232 1,939,257
40 95 5,010 0 0 0 2,109,307 2,109,307 2,130,400
-------
Total 200,400
</TABLE>
Assuming Guaranteed Charges and a Gross Investment Return of 0.00%, contract
lapses at age 76. Assuming Guaranteed Charges and a Gross Investment Return of
12.00%, contract lapses at age 95. Assuming current charges and a gross
investment return of 12.00%, contract lapses at age 95.
This is an illustration, not a contract. For presentation in NJ.
The hypothetical investment results are illustrative only, and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown, and will depend on a number of
factors, including the Investment Allocations by a Contract Holder, and the
different investment rates of return for the MONY Series Fund or Enterprise
Accumulation Trust Portfolios. The Surrender Value, Fund Value and benefit
payable at death for a contract would be different from those shown if the
actual rates of investment return applicable to the contract averaged 0.00% or
12.00% over a period of years, but also fluctuated above or below those averages
for individual contract years. No representations can be made by MONY Life of
America, MONY Series Fund or Enterprise Accumulation Trust that these
hypothetical rates of return can be achieved for any one year, or sustained over
any period of time.
<TABLE>
<S> <C> <C>
INITIAL GUIDELINE SINGLE: $69,009.20 INITIAL GUIDELINE ANNUAL: $6,002.06 INITIAL TWO YEAR MINIMUM: $5,010.00
PREPARED ON: 01/04/95 05:12 pm PREPARED BY: Agent NOT VALID WITHOUT CURRENT
PROSPECTUS AND SUPPLEMENTAL
FOOTNOTE PAGE
</TABLE>
THIS ILLUSTRATION NOT VALID IN FLORIDA
B-58
<PAGE> 149
APPENDIX C
GUARANTEED DEATH BENEFIT RIDER
MONTHLY GUARANTEE PREMIUM FOR GUARANTEED DEATH
BENEFIT RIDER WITH TEN YEAR/AGE 75 GUARANTEE PERIOD
<TABLE>
<CAPTION>
MONTHLY GUARANTEE
PREMIUM
-----------------
<S> <C>
Specified Amount = $200,000
Male age 45 Preferred Nonsmoker Death Benefit Option 1...................... $257.33
Female age 45 Preferred Nonsmoker Death Benefit Option 1.................... $214.83
Male age 45 Standard Smoker Death Benefit Option 1.......................... $346.83
Male age 45 Preferred Nonsmoker Death Benefit Option 2...................... $257.33
Male age 35 Preferred Nonsmoker Death Benefit Option 1...................... $137.17
Male age 55 Preferred Nonsmoker Death Benefit Option 1...................... $417.50
</TABLE>
C-1
<PAGE> 150
APPENDIX D
GUARANTEED DEATH BENEFIT RIDER
MONTHLY GUARANTEE PREMIUM FOR GUARANTEED DEATH
BENEFIT RIDER WITH LIFETIME GUARANTEE PERIOD
<TABLE>
<CAPTION>
MONTHLY GUARANTEE
PREMIUM
-----------------
<S> <C>
Specified Amount = $200,000
Male age 45 Preferred Nonsmoker Death Benefit Option 1...................... $295.19
Female age 45 Preferred Nonsmoker Death Benefit Option 1.................... $247.16
Male age 45 Standard Smoker Death Benefit Option 1.......................... $398.48
Male age 45 Preferred Nonsmoker Death Benefit Option 2...................... $295.19
Male age 35 Preferred Nonsmoker Death Benefit Option 1...................... $182.22
Male age 55 Preferred Nonsmoker Death Benefit Option 1...................... $502.22
</TABLE>
D-1
<PAGE> 151
PROSPECTUS DATED MAY 1, 1996
MONY SERIES FUND, INC.
1740 BROADWAY
NEW YORK, NEW YORK 10019
1-800-487-6669
MONY Series Fund, Inc. (the "Fund"), a diversified open-end management
investment company, is intended to provide a wide range of investment
alternatives through its seven separate Portfolios, each of which is, for
investment and federal tax purposes, in effect a separate fund. A separate class
of stock will be issued for each Portfolio.
Shares of all Portfolios of the Fund are currently sold to MONY Life
Insurance Company of America ("MONY America") and The Mutual Life Insurance
Company of New York ("MONY") for allocation to MONY America Variable Account L
and MONY Variable Account L to fund the benefits under Flexible Premium Variable
Life Insurance Contracts issued by those companies and for allocation to MONY
America Variable Account A and MONY Variable Account A to fund benefits under
Flexible Payment Variable Annuity Contracts issued by those companies. Shares of
all Portfolios of the Fund, other than the Government Securities Portfolio, are
sold to MONY America and MONY for allocation to MONY America Variable Account S
and MONY Variable Account S to fund benefits under Variable Life Insurance with
Additional Premium Option contracts issued by those companies and to MONY for
allocation to Keynote Series Account ("Keynote") to fund benefits under
Individual Variable Annuity Contracts. These variable accounts ("Variable
Accounts") invest in shares of the Fund in accordance with allocation
instructions received from Contract holders. Such allocation rights are further
described in the attached prospectus for one of the contracts. The Variable
Accounts invest in shares of the Fund through subaccounts that correspond to the
Portfolios. The Variable Accounts will redeem shares of the Fund to the extent
necessary to provide benefits under the Contracts or for such other purposes as
may be consistent with the Contracts.
The investment objectives of the Portfolios are:
INTERMEDIATE TERM BOND PORTFOLIO: The maximum income over the
intermediate term consistent with preservation of capital, through
investment in highly-rated debt securities, U.S. Government obligations, and
money market instruments, together having a dollar-weighted average life of
between 4 and 8 years.
LONG TERM BOND PORTFOLIO: The maximum income over the longer term
consistent with preservation of capital, through investment in highly-rated
debt securities, U.S. Government obligations, and money market instruments,
together having a dollar-weighted average life of more than 8 years.
GOVERNMENT SECURITIES PORTFOLIO: The maximum current income over the
intermediate term consistent with preservation of capital, through
investment in highly-rated debt securities of the United States government
and its agencies and money market instruments, with a dollar-weighted
average life of up to ten years at the time of purchase.
MONEY MARKET PORTFOLIO: The maximum current income consistent with
preservation of capital and maintenance of liquidity, through investment in
money market instruments. The Money Market Portfolio is neither insured nor
guaranteed by the United States Government, and, while the Money Market
Portfolio seeks to maintain a stable net asset value of $1.00 per share,
there is no assurance that it will be able to do so.
There can be no assurance that the objective of any Portfolio will be realized.
See INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS at pages 8-9.
---------------------
THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT THE FUND THAT A
PROSPECTIVE INVESTOR OUGHT TO KNOW BEFORE INVESTING. READ THIS PROSPECTUS
CAREFULLY AND RETAIN IT FOR FUTURE REFERENCE.
---------------------
ADDITIONAL INFORMATION ABOUT THE FUND HAS BEEN FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION AND IS AVAILABLE WITHOUT CHARGE BY CALLING
1-800-487-6669 OR BY SENDING A REQUEST TO: MONY SERIES FUND, INC., 1740
BROADWAY, NEW YORK, NEW YORK 10019. THE STATEMENT OF ADDITIONAL INFORMATION,
DATED MAY 1, 1996, IS INCORPORATED BY REFERENCE INTO THIS PROSPECTUS.
---------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
<PAGE> 152
MONY SERIES FUND, INC.
---------------------
PROSPECTUS
---------------------
NO DEALER, SALESMAN, OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, AND IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST
NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND OR THE INVESTMENT
ADVISER. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY STATE IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE.
---------------------
CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PROSPECTUS SUMMARY.................................................................... 1
The Fund............................................................................ 1
The Accounts and the Contracts...................................................... 1
Investment Objectives and Risks of the Portfolios................................... 1
Investment Adviser.................................................................. 2
Investment Management Fees and Expenses............................................. 2
Responsibility for Day-to-Day Management of the Fund................................ 3
Purchase and Redemption of Shares................................................... 3
Financial Highlights................................................................ 3
Financial Highlights Table.......................................................... 4
STRUCTURE OF THE FUND................................................................. 8
INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS.................................. 8
Intermediate Term Bond Portfolio.................................................... 8
Long Term Bond Portfolio............................................................ 9
Government Securities Portfolio..................................................... 9
Money Market Portfolio.............................................................. 10
INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS.................................. 10
Loans of Portfolio Securities....................................................... 11
State Law Restrictions.............................................................. 12
Federal Income Tax Status........................................................... 12
MANAGEMENT OF THE FUND................................................................ 13
Investment Management Arrangements and Expenses..................................... 13
Responsibility for Day-to-Day Management of the Fund................................ 15
Custodian, Transfer Agent, and Dividend Disbursing Agent............................ 15
PURCHASE AND REDEMPTION OF SHARES..................................................... 15
DETERMINATION OF NET ASSET VALUE...................................................... 16
Valuation of Intermediate Term Bond, Long Term Bond, and Government Securities
Portfolios....................................................................... 16
Valuation of Money Market Portfolio................................................. 16
SHARES IN THE FUND.................................................................... 17
Voting Rights....................................................................... 18
Dividends, Distributions, and Taxes................................................. 18
Shareholder Reports and Inquiries................................................... 19
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS.......................................... 19
ADDITIONAL INFORMATION................................................................ 20
Appendix A: Securities in Which the Money Market Portfolio May Currently Invest....... A-1
Appendix B: Debt Ratings.............................................................. B-1
</TABLE>
(i)
<PAGE> 153
PROSPECTUS SUMMARY
The following summary should be read in conjunction with the detailed
information appearing elsewhere in this Prospectus.
THE FUND
MONY Series Fund, Inc. (the "Fund"), a diversified open-end management
investment company, is a Maryland corporation organized on December 14, 1984.
The Fund currently consists of seven (7) separate Portfolios: the Equity Income
Portfolio, the Equity Growth Portfolio, the Intermediate Term Bond Portfolio,
the Long Term Bond Portfolio, the Government Securities Portfolio, the Money
Market Portfolio, and the Diversified Portfolio. Each Portfolio is, for
investment and federal tax purposes, in effect a separate investment fund, and
the Fund will issue a separate class of capital stock for each Portfolio. In
other respects the Fund is treated as one entity. For more detailed information,
see STRUCTURE OF THE FUND at page 8.
THE ACCOUNTS AND THE CONTRACTS
Shares of all Portfolios in the Fund are currently sold to MONY Life
Insurance Company of America ("MONY America") and The Mutual Life Insurance
Company of New York ("MONY") for allocation to MONY America Variable Account L
and MONY Variable Account L to fund benefits under Flexible Premium Variable
Life Insurance Contracts issued by those companies and to those companies for
allocation to MONY America Variable Account A and MONY Variable Account A to
fund benefits under Flexible Payment Variable Annuity contracts issued by those
companies. Shares of all Portfolios, other than the Government Securities
Portfolio, are also sold to the MONY America and MONY for allocation to MONY
America Variable Account S and MONY Variable Account S to fund benefits under
Variable Life Insurance with Additional Premium Option contracts issued by those
companies. In addition, shares of the Fund are sold to MONY for allocation to
Keynote Series Account ("Keynote") to fund benefits under Individual Variable
Annuity Contracts and, until June 24, 1994, were sold to MONY for allocation to
Keynote Series Account to fund benefits under Group Annuity Contracts issued by
MONY. Each Contract holder allocates the net premiums and the assets relating to
these Contracts, within the limitations described in the Contracts, among the
subaccounts of these variable accounts ("Variable Accounts") which in turn are
invested in the corresponding Portfolios of the Fund. Contract holders should
consider that the investment return experience of the Portfolios will affect the
value of the Contracts and may affect the amount of benefits received under the
Contracts. The attached prospectus for the Contracts describes the Contracts and
the relationship between changes in the value of shares of each Portfolio and
changes in the benefits payable under the Contracts. The rights of the Variable
Accounts as shareholders should be distinguished from the rights of a Contract
holder which are described in the contracts. Because the shares of the Fund will
be sold to MONY America and MONY for allocation to the Variable Accounts, the
terms "shareholder" or "shareholders" in this Prospectus refer to those
Companies.
INVESTMENT OBJECTIVES AND RISKS OF THE PORTFOLIOS
Each of the Portfolios seeks to achieve a different investment objective.
Accordingly, each Portfolio can be expected to have different investment results
and to be subject to different financial and market risks and current income
volatility. Financial risk refers to the ability of an issuer of a debt security
to pay principal and interest on that security, and to the earnings stability
and overall financial soundness of an issuer of an equity security. Market risk
refers to the degree to which the price of a security will react to changes in
conditions in securities markets in general and, with particular reference to
debt securities, to changes in the overall level of interest rates. Current
income volatility refers to the degree and rapidity with which changes in the
overall level of interest rates become reflected in the level of current income
of the Portfolios.
The investment objectives and risks of the available Portfolios are:
Intermediate Term Bond Portfolio: The Intermediate Term Bond Portfolio,
having a dollar-weighted average life of between 4 and 8 years, seeks to
maximize income over the intermediate term consistent with
1
<PAGE> 154
preservation of capital. The Portfolio will invest primarily in intermediate
term bonds. The Intermediate Term Bond Portfolio should be subject to relatively
little financial risk and a moderate level of market risk.
Long Term Bond Portfolio: The Long Term Bond Portfolio, having a
dollar-weighted average life of more than 8 years, seeks to maximize income over
the longer term consistent with preservation of capital. The Portfolio will
invest primarily in long term bonds. The Long Term Bond Portfolio should be
subject to relatively little financial risk and a higher level of market risk
than the Intermediate Term Bond Portfolio.
Government Securities Portfolio: The Government Securities Portfolio seeks
to maximize current income over the intermediate term consistent with
preservation of capital, through investment in highly-rated debt securities of
the United States government and its agencies and money market instruments, with
a dollar-weighted average life of up to ten years at the time of purchase. The
Government Securities Portfolio should be subject to relatively little financial
risk and a moderate level of market risk.
Money Market Portfolio: The Money Market Portfolio seeks to maximize
current income consistent with the preservation of capital and the maintenance
of liquidity. The Portfolio will invest primarily in money market instruments.
The Money Market Portfolio should be subject to little market risk or financial
risk but should be subject to a high level of current income volatility.
There can be no assurance that the objectives of any Portfolio will be
realized. For more detailed information, see INVESTMENT OBJECTIVES AND POLICIES
OF THE PORTFOLIOS at pages 8-9 and INVESTMENT RESTRICTIONS APPLICABLE TO THE
PORTFOLIOS at pages 10-11.
INVESTMENT ADVISER
The Investment Adviser of all the Portfolios of the Fund is MONY America, a
wholly-owned subsidiary of MONY. MONY America has entered into a Services
Agreement with MONY for the provision of personnel, equipment, facilities and
other services in order to carry out its duties as investment adviser to the
Fund. For more detailed information, see INVESTMENT MANAGEMENT ARRANGEMENTS AND
EXPENSES at page 13.
INVESTMENT MANAGEMENT FEES AND EXPENSES
MONY America's fee for its investment management services to the Equity
Income, Equity Growth, Intermediate Term Bond, Long Term Bond, Government
Securities, Money Market, and Diversified Portfolios of the Fund is a daily
charge equal to an annual rate of .40 percent of the first $400 million of the
aggregate average daily net assets of those Portfolios, .35 percent of the next
$400 million of the aggregate average daily net assets of those Portfolios, and
.30 percent of the aggregate average daily net assets of those Portfolios in
excess of $800 million. MONY America has agreed to bear all expenses associated
with organizing the Fund, the initial registration of its securities, the
calculation of the net asset value of the Portfolios, and the compensation of
the Fund's directors, officers and employees who are interested persons of MONY
America. All other expenses will be borne by the Fund, subject to certain
limitations imposed by state law. For more detailed information, see INVESTMENT
MANAGEMENT ARRANGEMENTS AND EXPENSES at page 13.
RESPONSIBILITY FOR DAY-TO-DAY MANAGEMENT OF THE FUND
Day to day management of all the Portfolios of the Fund are undertaken by a
committee of MONY America, investment adviser to the Fund.
PURCHASE AND REDEMPTION OF SHARES
Shares in each of the Portfolios are offered continuously to MONY and MONY
America for allocation to the Variable Accounts at prices equal to their
respective net asset values per share, without the imposition of an additional
sales charge at the Fund level. The shares' redemption prices are also equal to
their respective net asset values per share as next determined after the receipt
of proper notice of redemption. For more detailed information, see DETERMINATION
OF NET ASSET VALUE at page 16.
2
<PAGE> 155
FINANCIAL HIGHLIGHTS
Set forth on the following pages are highlights of the operations of each
Portfolio of the Fund. Additional financial information is contained in the
Statement of Additional Information of the Fund and in the Annual Report of the
Fund, both of which are available, free of charge, by contacting the Fund at the
address or at the telephone number set forth on the cover of this Prospectus.
The Annual Report also contains a discussion of the performance of the Fund
during 1995 as well as line graphs which depict the value at inception and for
each year subsequent to inception of a $10,000 investment made in each Portfolio
of the Fund. These graphs also depict the performance of an investment over the
same period in securities which comprise a broad based, unmanaged securities
market index.
3
<PAGE> 156
MONY SERIES FUND, INC.
INTERMEDIATE TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 9.75 $ 10.51 $ 10.33 $ 10.22 $ 9.69 $ 9.85
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.63 0.60 0.47 0.59 0.77 0.84
Net gains (losses) on investments
(both realized and unrealized)... 0.82 (0.76) 0.34 0.11 0.71 (0.16)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations..................... 1.45 (0.16) 0.81 0.70 1.48 0.68
Less distributions
Dividends (from net investment
income).......................... (0.63) (0.60) (0.47) (0.59) (0.77) (0.84)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.16) 0.00* 0.00 0.00
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 0.00 (0.18) 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............. (0.63) (0.60) (0.63) (0.59) (0.95) (0.84)
Net asset value, end of year........ $ 10.57 $ 9.75 $ 10.51 $ 10.33 $ 10.22 $ 9.69
=========== =========== =========== =========== =========== ===========
Total return.................... 14.82% (1.52%) 7.84% 6.85% 15.27% 6.90%
Ratios/Supplemental Data
Net assets, end of year............. $37,519,833 $32,283,693 $31,326,168 $20,911,161 $22,005,519 $20,260,361
Ratio of net investment income to
average net assets................. 6.10% 5.66% 5.26% 6.24% 7.88% 8.52%
Ratio of expenses to average net
assets............................. 0.49% 0.52% 0.52% 0.53% 0.51% 0.54%
Portfolio turnover rate............. 32.07% 25.41% 50.61% 62.27% 55.03% 20.06%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------
1989 1988 1987 1986
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 9.63 $ 9.93 $ 12.15 $ 11.92
----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.90 0.86 0.89 0.98
Net gains (losses) on investments
(both realized and unrealized)... 0.22 (0.29) (0.88) 0.47
----------- ----------- ----------- -----------
Total from investment
operations..................... 1.12 0.57 0.01 1.45
Less distributions
Dividends (from net investment
income).......................... (0.90) (0.87) (1.59) (1.12)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.64) (0.10)
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions............. (0.90) (0.87) (2.23) (1.22)
Net asset value, end of year........ $ 9.85 $ 9.63 $ 9.93 $ 12.15
=========== =========== =========== ===========
Total return.................... 11.63% 5.74% 0.08% 12.16%
Ratios/Supplemental Data
Net assets, end of year............. $20,419,237 $23,192,883 $25,217,761 $27,051,933
Ratio of net investment income to
average net assets................. 8.67% 8.43% 8.18% 8.34%
Ratio of expenses to average net
assets............................. 0.60% 0.55% 0.60% 0.60%
Portfolio turnover rate............. 30.99% 24.77% 32.23% 81.92%
</TABLE>
- ---------------
* Less than $.01 per share.
4
<PAGE> 157
MONY SERIES FUND, INC.
LONG TERM BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 10.47 $ 12.05 $ 11.19 $ 11.03 $ 10.47 $ 10.70
----------- ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.74 0.84 0.50 0.81 0.72 0.90
Net gains (losses) on investments
(both realized and unrealized)... 2.41 (1.58) 1.09 0.16 1.12 (0.23)
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations..................... 3.15 (0.74) 1.59 0.97 1.84 0.67
Less distributions
Dividends (from net investment
income).......................... (0.74) (0.84) (0.50) (0.74) (0.72) (0.90)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.23) 0.00* (0.37) 0.00
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 (0.07) (0.19) 0.00
----------- ----------- ----------- ----------- ----------- -----------
Total distributions............. (0.74) (0.84) (0.73) (0.81) (1.28) (0.90)
Net asset value, end of year........ $ 12.88 $ 10.47 $ 12.05 $ 11.19 $ 11.03 $ 10.47
=========== =========== =========== =========== =========== ===========
Total return.................... 30.04% (6.14%) 14.21% 8.79% 17.57% 6.26%
Ratios/Supplemental Data
Net assets, end of year............. $62,017,889 $44,012,329 $63,044,619 $29,564,159 $23,207,734 $20,532,817
Ratio of net investment income to
average net assets................. 6.58% 6.45% 5.69% 7.71% 8.12% 8.72%
Ratio of expenses to average net
assets............................. 0.48% 0.49% 0.48% 0.51% 0.51% 0.53%
Portfolio turnover rate............. 79.45% 110.19% 45.93% 0.17% 63.68% 27.49%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------
1989 1988 1987 1986
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of
year............................... $ 9.97 $ 10.28 $ 12.87 $ 12.32
----------- ----------- ----------- -----------
Income from investment operations
Net investment income............. 0.96 0.96 0.92 1.02
Net gains (losses) on investments
(both realized and unrealized)... 0.73 (0.10) (1.11) 0.81
----------- ----------- ----------- -----------
Total from investment
operations..................... 1.69 0.86 (0.19) 1.83
Less distributions
Dividends (from net investment
income).......................... (0.96) (1.17) (1.58) (0.91)
Distributions (from realized
capital gains)................... 0.00 0.00 (0.82) (0.37)
Distributions (from additional
paid-in capital)................. 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
Total distributions............. (0.96) (1.17) (2.40) (1.28)
Net asset value, end of year........ $ 10.70 $ 9.97 $ 10.28 $ 12.87
=========== =========== =========== ===========
Total return.................... 16.95% 8.37% (1.48%) 14.85%
Ratios/Supplemental Data
Net assets, end of year............. $20,770,552 $23,840,760 $26,798,016 $28,623,485
Ratio of net investment income to
average net assets................. 8.54% 9.04% 8.44% 8.27%
Ratio of expenses to average net
assets............................. 0.64% 0.54% 0.60% 0.60%
Portfolio turnover rate............. 36.00% 42.79% 128.24% 68.77%
</TABLE>
- ---------------
* Less than $.01 per share.
5
<PAGE> 158
MONY SERIES FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ----------- ----------- ----------- ----------- -----------
Income from investment operations
Net investment income............... 0.05 0.03 0.01 0.03 0.06 0.07
Less distributions
Dividends (from net investment
income)............................ (0.05) (0.03) (0.01) (0.03) (0.06) (0.07)
------------ ----------- ----------- ----------- ----------- -----------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ =========== =========== =========== =========== ===========
Total return...................... 5.57% 5.33% 2.75% 3.31% 5.60% 7.22%
Ratios/Supplemental Data
Net assets, end of year............... $110,366,978 $83,352,731 $65,474,860 $50,892,593 $34,642,974 $26,924,389
Ratio of net investment income to
average net assets.................. 5.30% 3.77% 2.62% 3.17% 5.80% 7.63%
Ratio of expenses to average net
assets.............................. 0.46% 0.49% 0.46% 0.48% 0.54% 0.54%
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31,
------------------------------------------------------
1989 1988 1987 1986
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ---------- ---------- ----------
Income from investment operations
Net investment income............... 0.08 0.07 0.05 0.05
Less distributions
Dividends (from net investment
income)............................ (0.08) (0.07) (0.05) (0.05)
----------- ---------- ---------- ----------
Net asset value, end of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ==========
Total return...................... 8.20% 6.56% 5.34% 5.26%
Ratios/Supplemental Data
Net assets, end of year............... $10,817,623 $4,552,241 $2,883,644 $2,271,034
Ratio of net investment income to
average net assets.................. 8.06% 6.77% 5.36% 5.23%
Ratio of expenses to average net
assets.............................. 0.92% 1.08% 1.50% 1.50%
</TABLE>
6
<PAGE> 159
MONY SERIES FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
FOR THE
PERIOD
MAY 1, 1991**
FOR THE YEARS ENDED DECEMBER 31, THROUGH
------------------------------------------------------ DECEMBER 31,
1995 1994 1993 1992 1991
--------- --------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................... $ 9.51 $ 9.72 $ 9.66 $ 10.70 $ 10.00
---------- ---------- ----------- ----------- -----------
Income from investment operations
Net investment income................................ 0.34 0.05 0.52 1.00 0.27
Net gains (losses) on investments (both realized and
unrealized)......................................... 0.70 (0.21) 0.27 (0.25) 0.70
---------- ---------- ----------- ----------- -----------
Total from investment operations.................. 1.04 (0.16) 0.79 0.75 0.97
Less distributions
Dividends (from net investment income)............... (0.34) (0.05) (0.52) (1.00) (0.27)
Distributions (from realized capital gains).......... (0.00)* 0.00 (0.21) (0.79) 0.00
Distributions (in excess of realized capital
gains).............................................. (0.00) 0.00 0.00* 0.00 0.00
---------- ---------- ----------- ----------- -----------
Total distributions............................... (0.34) (0.05) (0.73) (1.79) (0.27)
Net asset value, end of period......................... $ 10.21 $ 9.51 $ 9.72 $ 9.66 $ 10.70
========== ========== =========== =========== ===========
Total return...................................... 10.89% (2.68%)++ 8.18% 7.01% 9.70%+
Ratios/Supplemental Data
Net assets, end of period.............................. $8,555,893 $1,204,231 $20,036,097 $19,096,791 $42,235,195
Ratio of net investment income to average net assets... 6.10% 5.43%++ 5.06% 6.25% 5.75%++
Ratio of expenses to average net assets................ 0.74% 0.57%++ 0.53% 0.50% 0.43%++
Portfolio turnover rate................................ 0.28% 7.82% 41.01% 28.28% 151.81%
</TABLE>
- ---------------
* Less than $.01 per share.
** Commencement of operations.
+ Average annual.
++ Annualized since Portfolio was dormant from June 24, 1994 to November 18,
1994.
++ Annualized.
7
<PAGE> 160
STRUCTURE OF THE FUND
The Fund, a Maryland corporation organized on December 14, 1984, currently
is composed of seven different Portfolios that are, in effect, separate
investment funds: the Equity Income Portfolio, the Equity Growth Portfolio, the
Intermediate Term Bond Portfolio, the Long Term Bond Portfolio, the Government
Securities Portfolio, the Money Market Portfolio, and the Diversified Portfolio.
Until November 18, 1994, the Government Securities Portfolio had been known as
the Intermediate Government Bond Portfolio. The Fund issues a separate class of
capital stock for each Portfolio. Each share of capital stock issued with
respect to a Portfolio will have a pro-rata interest in the assets of that
Portfolio and will have no interest in the assets of any other Portfolio. Each
Portfolio bears its own liabilities and also its proportionate share of the
general liabilities of the Fund. The Fund is registered under the Investment
Company Act of 1940 (the "1940 Act") as an open-end, diversified, management
investment company. This registration does not imply any supervision by the
Securities and Exchange Commission over the Fund's management or its investment
policies or practices.
Shares of the Fund allocated to Keynote were presented for redemption in
kind on June 24, 1994. This redemption is as a result of the sale by MONY of its
group pension operation to AEGON USA, Inc. ("AEGON") and the transfer of group
annuity contracts, the purchase payments for which are allocated to Keynote, to
a wholly-owned life insurance subsidiary of AEGON. As a part of the agreement of
sale, shares of another series mutual fund were substituted for shares of the
Fund allocated to Keynote.
INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS
Each Portfolio of the Fund has a different investment objective which it
pursues through separate investment policies as described below. Since each
Portfolio has a different investment objective, each can be expected to have
different investment results and incur different market and financial risks. The
Fund may in the future establish other Portfolios with different investment
objectives.
The investment objectives of each Portfolio are fundamental and may not be
changed without the approval of the holders of a majority of the outstanding
shares of the Portfolio affected (which for this purpose and under the 1940 Act
means the lesser of (i) 67 percent of the Portfolio shares represented at a
meeting at which more than 50 percent of the outstanding Portfolio shares are
represented or (ii) more than 50 percent of the outstanding Portfolio shares).
The policies by which a Portfolio seeks to achieve its investment objectives,
however, are not fundamental. They may be changed by the Board of Directors of
the Fund without shareholder approval.
Each Portfolio has a different portfolio turnover rate which is the
percentage computed by dividing the lesser of portfolio purchases or sales by
the average value of the Portfolio, in each case excluding securities with
maturities at the time of acquisition of one year or less. Brokerage expenses
can be expected to be higher as a result of higher turnover rates. The rate of
portfolio turnover is not a limiting factor when it is deemed appropriate to
purchase or sell securities of a Portfolio.
There is no guarantee that any of the objectives of any Portfolio will be
met. The following paragraphs describe the investment objectives, policies and
portfolio turnover rates of each available Portfolio.
INTERMEDIATE TERM BOND PORTFOLIO
The objective of the Intermediate Term Bond Portfolio is to maximize income
over the intermediate term consistent with preservation of capital.
The Intermediate Term Bond Portfolio seeks to achieve this objective by
following the policy of investing in (i) debt securities which, at the time of
purchase, have a rating within the four highest grades as determined by either
Moody's Investors Service, Inc. or Standard & Poor's Corporation as described in
Appendix B; (ii) obligations of the U.S. Government, its agencies or
instrumentalities; and (iii) high-quality, short-term obligations as described
in Appendix A. The Intermediate Term Bond Portfolio will be managed so as to
maintain a dollar-weighted average life of between 4 and 8 years.
8
<PAGE> 161
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Intermediate Term Bond
Portfolio will vary to reflect the Investment Adviser's assessment of
prospective changes in interest rates, so that the Intermediate Term Bond
Portfolio may benefit from relative price appreciation when interest rates
decline and may protect capital value when interest rates rise. The success of
this strategy will depend on the Investment Adviser's ability to forecast
changes in interest rates, and there is a corresponding risk that the value of
the securities held in the Portfolio will decline. Because of their relatively
shorter maturities, the value of the bonds in this Portfolio will be less
sensitive to changes in interest rates than the longer-term bonds held in the
Long Term Bond Portfolio and similar to the bonds held in the Government
Securities Portfolio. Thus, compared to the Long Term Bond Portfolio, there will
be less of a risk that the value of the securities held in the Intermediate Term
Bond Portfolio will decline, but not as much of a likelihood for greater
appreciation in value. Compared to the Government Securities Portfolio, there
will be a similar risk that the value of the securities held in the Intermediate
Term Bond Portfolio will decline and a similar likelihood for appreciation in
value.
The annual portfolio turnover rate of the Intermediate Term Bond Portfolio
is not likely to exceed 100%.
LONG TERM BOND PORTFOLIO
The objective of the Long Term Bond Portfolio is to maximize income over
the longer term consistent with preservation of capital.
The Long Term Bond Portfolio seeks to achieve this objective by following
the policy of investing in
(i) debt securities which, at the time of purchase, have a rating within the
four highest grades as determined by either Moody's Investors Service, Inc. or
Standard & Poor's Corporation as described in Appendix B; (ii) obligations of
the U.S. Government, its agencies or instrumentalities; and (iii) high-quality,
short-term obligations as described in Appendix A. The Long Term Bond Portfolio
will be managed so as to maintain a dollar-weighted average life in excess of 8
years.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Long Term Bond Portfolio
will vary to reflect the Investment Adviser's assessment of prospective changes
in interest rates, so that the Long Term Bond Portfolio may benefit from
relative price appreciation when interest rates decline and may protect capital
value when interest rates rise. The success of this strategy will depend on the
Investment Adviser's ability to forecast changes in interest rates, and there is
a corresponding risk that the value of the securities held in the Long Term Bond
Portfolio will decline. Because of their relatively longer maturities, the value
of the bonds in this Portfolio will be more sensitive to changes in interest
rates than the relatively shorter-term bonds held in the Intermediate Term Bond
Portfolio and the Government Securities Portfolio. Thus, compared to the
Intermediate Term Bond Portfolio and the Government Securities Portfolio, there
will be more of a risk that the value of securities held in the Long Term Bond
Portfolio will decline, but more of a likelihood for greater appreciation in
value.
The annual portfolio turnover rate of the Long Term Bond Portfolio is not
likely to exceed 100 percent.
GOVERNMENT SECURITIES PORTFOLIO
The primary objective of the Government Securities Portfolio is to maximize
income over the intermediate term consistent with preservation of capital.
The Government Securities Portfolio will seek to achieve this objective by
following a policy of investing in highly-rated debt securities of the United
States government and its agencies; and money market instruments. The Government
Securities Portfolio will be managed so as to maintain a dollar-weighted average
life of up to ten years at time of purchase.
Since the value of fixed income securities generally fluctuates inversely
with changes in interest rates, the average life of the Government Securities
Portfolio will vary to reflect the Investment Adviser's assessment of
prospective changes in interest rates, so that the Government Securities
Portfolio may benefit from relative price appreciation when interest rates
decline and may protect capital value when interest rates rise. The success of
this strategy will depend on the Investment Adviser's ability to forecast
changes in interest rates,
9
<PAGE> 162
and there is a corresponding risk that the value of the securities held in the
Government Securities Portfolio will decline. Because of their relatively
shorter maturities, the value of the bonds in this Portfolio will be less
sensitive to changes in interest rates than the relatively longer-term bonds
held in the Long Term Bond Portfolio. Because of the relatively similar
maturities, the value of the bonds in this Portfolio will be similar to changes
in interest rates in the Intermediate Term Bond Portfolio. Thus, compared to the
Long Term Bond Portfolio, there will be less of a risk that the value of
securities held in the Government Securities Portfolio will decline, but not as
much of a likelihood for greater appreciation in value. Compared to the
Intermediate Term Bond Portfolio, there will be a similar risk that the value of
securities held in the Government Securities Portfolio will decline and a
similar likelihood for appreciation in value.
The annual portfolio turnover rate of the Government Securities Portfolio
is not likely to exceed 100 percent. For 1991, the portfolio turnover rate
exceeded 100 percent. The Government Securities Portfolio commenced operation on
May 1, 1991. On June 24, 1994, the Keynote Series Account requested redemption
of all shares of this Portfolio. Effective on and after November 18, 1994,
shares of the Portfolio will be offered to MONY America and MONY for allocation
to MONY America Variable Account A and MONY Variable Account A to fund Flexible
Payment Variable Annuity Contracts issued by those companies. As this Portfolio
is, in effect, a start-up fund, a larger than normal number of transactions can
be expected as the fund matures, and, therefore, the additional transaction
expenses associated with high portfolio turnover rates may adversely impact
purchasers of this Portfolio's shares.
MONEY MARKET PORTFOLIO
The objective of the Money Market Portfolio is to maximize current income
consistent with the preservation of capital and maintenance of liquidity.
The Money Market Portfolio seeks to achieve this objective by following the
policy of investing primarily in money market instruments denominated in U.S.
dollars that mature in one year or less from the date the Money Market Portfolio
acquires them. Money market instruments include short-term obligations of the
U.S. Government, its agencies or instrumentalities, of domestic corporations and
of banks. They also include commercial paper and other corporate obligations.
The Money Market Portfolio may also enter into repurchase and reverse repurchase
agreements. A detailed description of the money market instruments in which the
Money Market Portfolio may invest, of the repurchase and reverse repurchase
agreements it may enter into, and of the risks associated with those instruments
and agreements may be found in Appendix A. The dollar-weighted average life to
maturity of the securities held by the Money Market Portfolio is expected to be
less than 90 days.
Because of the high-quality, short-term nature of the Money Market
Portfolio's holdings, increases in the value of an investment in the Portfolio
will be derived almost entirely from interest on the securities held by it.
The Money Market Portfolio will attempt, consistent with preservation of
capital, to achieve the highest possible yield from its investments. Yield with
respect to the Money Market Portfolio normally will fluctuate, sometimes
substantially, on a daily basis and is affected by changes in interest rates on
money market instruments, average portfolio maturities, the type and quality of
portfolio securities held, and the expenses of the Money Market Portfolio.
Therefore, the yield for any given past period should not be considered as
representative of the yield for any future period.
Because of the short term nature of the securities in which the Money
Market Portfolio will invest, and because the Portfolio's investments will be
constantly changing in response to market conditions, an annual portfolio
turnover rate for the Money Market Portfolio would not be meaningful and will
not be determined. The Rules of the Securities and Exchange Commission reflect
that such calculations would not be meaningful and, therefore, do not require
calculation of turnover rates for securities with a maturity of one year or
less.
INVESTMENT RESTRICTIONS APPLICABLE TO THE PORTFOLIOS
The Fund has adopted restrictions relating to the investment of assets of
the Portfolios and their activities. The investment restrictions are fundamental
policies and may not be changed without the approval of a
10
<PAGE> 163
majority vote of the outstanding shares (as defined above at page 8) of each of
the Portfolios affected. (See VOTING RIGHTS at page 18.) These investment
restrictions, which apply to the Fund's seven current Portfolios, may be
different for any new portfolios that the Fund may create in the future.
Some of the Fund's investment restrictions have the effect of limiting
certain practices, while, however, allowing a portion of a Portfolio's net
assets to be at risk. These investment restrictions are:
1. The Portfolios will not purchase real estate or real estate
mortgages, except that the right is reserved for each Portfolio to purchase
and sell securities which are secured by real estate or real estate
mortgages and securities of real estate investment trusts or other issuers
that invest or deal in the foregoing. This restriction does not apply to
obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities. This restriction does not prohibit the Fund in the
future from establishing one or more real estate portfolios.
2. Loans, both short and long term, may be made by a Portfolio only
through the purchase or acquisition of privately placed bonds, debentures,
notes or other evidences of indebtedness that may or may not be convertible
into stock of a type customarily acquired by institutional investors,
provided, however, that no such purchase or acquisition will be made if, as
a result thereof, more than 10 percent of the value of the Portfolio's
assets would be so invested. Repurchase agreements are not subject to this
restriction.
3. Borrowing of money will not be made by any Portfolio, except as a
temporary position for emergency purposes (to facilitate redemptions but
not for leveraging or for investment) and then only from banks in an amount
not exceeding 10 percent of the value of a Portfolio's assets (including
the amount borrowed) less liabilities (not including the amount borrowed as
a result of the borrowing) at the time such borrowing is made, and during
any period when outstanding indebtedness for money borrowed shall exceed 5
percent of the value of its total assets, the Portfolio will make no
purchases of securities.
4. In general, the Portfolios will not invest more than 10 percent of
any Portfolio's total assets in illiquid assets, including illiquid
restricted securities, repurchase agreements maturing in more than seven
days, and nonnegotiable time deposits maturing in more than seven days.
More detailed information about these investment restrictions, as well as
other investment restrictions applicable to the Portfolios, is contained in the
Statement of Additional Information (INVESTMENT RESTRICTIONS). In addition, the
Fund intends to comply with the various requirements of the Internal Revenue
Code to qualify as a "regulated investment company" under the Code. For a
description of these requirements see FEDERAL INCOME TAX STATUS on page 12.
LOANS OF PORTFOLIO SECURITIES
Each Portfolio may from time to time lend the securities it holds to
broker-dealers, provided that the aggregate value of the securities so lent by
any Portfolio does not exceed 10 percent of the value of that Portfolio's assets
and further provided that such loans are made pursuant to written agreements and
are continuously secured by collateral in the form of cash, U.S. Government
securities, or irrevocable standby letters of credit in an amount equal to at
least the market value at all times of the loaned securities plus the accrued
interest and dividends. During the time securities are on loan, the Portfolio
will continue to receive the interest and dividends, or amount equivalent
thereto, on the loaned securities while receiving a fee from the borrower or
earning interest on the investment of the cash collateral. The right to
terminate the loan will be given to either party subject to appropriate notice.
Upon termination of the loan, the borrower will return to the lender securities
identical to the loaned securities. The Portfolio will not have the right to
vote securities on loan, but would terminate the loan and retain the right to
vote if that were considered important with respect to the investment.
The primary risk in lending securities is that the borrower may become
insolvent on a day on which the loaned security is rapidly advancing in price.
In such event, if the borrower fails to return the loaned securities, the
existing collateral might be insufficient to purchase back the full amount of
the security loaned, and the borrower would be unable to furnish additional
collateral. The borrower would be liable for any shortage; but
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the Portfolio would be an unsecured creditor with respect to such shortage and
might not be able to recover all or any of it. However, this risk may be
minimized by a careful selection of borrowers and securities to be lent and by
monitoring collateral.
No Portfolio will lend securities to broker-dealers affiliated with the
Fund or MONY. This will not affect the Fund's ability to maximize a Portfolio's
securities lending opportunities.
STATE LAW RESTRICTIONS
The investments of Keynote and the MONY Variable Accounts, and the MONY
America Variable Accounts are subject to the provisions of the New York and
Arizona insurance law, respectively, applicable to the investments of life
insurance company separate accounts. Although these state law investment
restrictions do not apply directly to the Fund, the Portfolios will comply,
without the approval of shareholders, with such statutory requirements, as they
exist or may be amended.
Under pertinent provisions of New York law, as they currently exist, the
assets of Keynote and the MONY Variable Accounts may be invested in any
investments (1) permitted by agreement between these Variable Accounts and their
Contract holders and (2) acquired in good faith and with that degree of care in
acquiring investments that an ordinarily prudent person in a like position would
use under similar circumstances. The only agreement with Contract holders
pertaining to investments permitted for the Variable Accounts is as described in
the prospectuses for the Contracts, namely that the Variable Accounts will
invest only in shares of the Fund. The investment of the assets of the Fund are
subject to the investment objectives, policies and restrictions applicable to
the Portfolios, as described in this Prospectus (see INVESTMENT OBJECTIVES AND
POLICIES OF THE PORTFOLIOS at page 8 and INVESTMENT RESTRICTIONS APPLICABLE TO
THE PORTFOLIOS at page 10) and in the Statement of Additional Information
(INVESTMENT RESTRICTIONS).
The pertinent provisions of Arizona law, as they currently exist, are in
summary form as follows:
The assets of variable accounts established by MONY America may be invested
in any investments that are of the kind permitted and that satisfy the
qualitative requirements, but without regard to quantitative restrictions.
Bonds, debentures, notes, commercial paper and other evidences of indebtedness,
and preferred, guaranteed or preference stocks must have received an investment
grade rating approved by the Director of Insurance. Funds may not be invested in
foreign banks (other than foreign branches of domestic banks) except that
investments may be made in obligations issued, assumed or guaranteed by the
International Bank for Reconstruction and Development. Investments not otherwise
permitted under Arizona law may be made in an amount not exceeding in the
aggregate 10 percent of assets and not exceeding 2 percent of assets as to any
one such investment.
Although compliance with New York and Arizona laws described above will
ordinarily result in compliance with any applicable laws of other states, under
some circumstances the laws of other states could impose additional
restrictions. Accordingly, if any state or other jurisdiction in which the
Variable Accounts propose to do business imposes limits applicable to the
Variable Accounts, in addition to any imposed by New York and Arizona law, the
Fund will comply with such further investment limits.
FEDERAL INCOME TAX STATUS
The Fund and each of its Portfolios intend to qualify as "regulated
investment companies" under the applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"). To qualify for treatment as regulated
investment companies, the Fund and each of its Portfolios must, among other
things, satisfy the following requirements:
1. At least 90 percent of the gross income of each of the Portfolios
must be derived from dividends, interest, payments with respect to
securities loans (as defined in section 512(a)(5) of the Code), and gains
from the sale or other disposition of stock or securities (as defined in
section 2(a)(36) of the Investment Company Act of 1940, as amended) or
foreign currencies, or other income (including but not limited to gains
from options, futures, or forward contracts) derived with respect to its
business of
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investing in such stock, securities or currencies. For purposes of meeting
this requirement, foreign currency gains which are not ancillary to the
Portfolio's principal business of investing in stock or securities (or
options and futures with respect to stock or securities) may be excluded
from qualifying income.
2. Each Portfolio must derive less than 30 percent of its gross income
in each taxable year from the sale or other disposition of stock,
securities held for less than 3 months, options, futures, forward
contracts, or foreign currency gains not related to a Portfolio's principal
business of investing in stock or securities. No portfolio will be
disqualified under this test by reason of sales resulting from abnormal
redemptions on any day occurring before the close of the fifth business day
after such day if the sum of the percentages of assets redeemed, for any
day on which such percentage exceeds 1% for the day in question and any
prior day in the taxable year exceeds 30% and the Fund would meet this test
if all its portfolios were treated as a single company.
3. At the close of each calendar quarter, at least 50 percent of the
value of the total assets of each of the Portfolios must be represented by
cash and cash items (including receivables), Government securities,
securities of other regulated investment companies, and other securities
(limited for each portfolio in respect of any one issuer, to an amount not
greater in value than 5 percent of the value of the total assets of that
Portfolio and to not more than 10 percent of the outstanding voting
securities of the issuer).
4. At the close of each calendar quarter, no more than 25 percent of
the value of the total assets of each of the Portfolios may be invested in
the securities of any one issuer except that this limitation shall not
apply to Government securities or securities of other regulated investment
companies. In addition, at the close of each calendar quarter, no more than
25 percent of the value of the total assets of each of the Portfolios may
be invested in the securities of 2 or more issuers which the Portfolio
controls and which are engaged in the same or similar trades or businesses.
For substantially all federal income tax purposes, each Portfolio of the
Fund is a separate entity. This means that the investment results of each
Portfolio will be calculated separately from those of the other Portfolios for
purposes of determining whether each Portfolio qualifies as a regulated
investment company and for purposes of determining the net ordinary income (or
loss) and net realized capital gains (or losses).
For information regarding the federal income tax implications of the Fund
and its Portfolios qualifying as a regulated investment company, see DIVIDENDS,
DISTRIBUTIONS AND TAXES at pages 18.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect. For the
complete provisions, reference should be made to the pertinent Code Sections and
Treasury Regulations. The Code and these Regulations are subject to change by
legislative, administrative or judicial actions.
MANAGEMENT OF THE FUND
The Board of Directors of the Fund is responsible for the management of the
business of the Fund under the laws of the State of Maryland, and it is
primarily responsible for reviewing the activities of the investment adviser.
INVESTMENT MANAGEMENT ARRANGEMENTS AND EXPENSES
The Fund has entered into an Investment Advisory Agreement with MONY
America under which MONY America will carry on the overall day-to-day management
of the Equity Income, Equity Growth, Intermediate Term Bond, Long Term Bond,
Government Securities, Money Market, and Diversified Portfolios of the Fund, and
provide investment advice and related services for each of those Portfolios. If
the Fund creates new portfolios in the future, MONY America may be appointed to
act as investment adviser and manager for those portfolios, as well, or the Fund
may appoint a different investment adviser for any new portfolio.
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MONY America receives an investment management fee as compensation for its
services to the Equity Income, Equity Growth, Intermediate Term Bond, Long Term
Bond, Government Securities, Money Market, and Diversified Portfolios of the
Fund. The fee is a daily charge equal to an annual rate of .40 percent of the
first $400 million of the aggregate average daily net assets of those
Portfolios, .35 percent of the next $400 million of the aggregate average daily
net assets of those Portfolios, and .30 percent of the aggregate average daily
net assets of those Portfolios in excess of $800 million. Each daily charge for
the fee is divided among those Portfolios in proportion to their net assets on
that date. MONY America has agreed to bear all expenses (i) for the Fund's
organization, (ii) related to initial registration and qualification under
federal and state securities laws, (iii) associated with calculating net asset
value of the Portfolios, and (iv) for compensation of the Fund's directors,
officers and employees who are interested persons (as defined by the 1940 Act)
of MONY America. All other expenses will be borne by the Fund, including any
extraordinary or non-recurring expenses. With respect to the expenses of
preparing, printing and mailing prospectuses, see PURCHASE AND REDEMPTION OF
SHARES at page 15. MONY America has agreed to reimburse the Fund for the amount,
if any, by which the aggregate ordinary operating expenses of any Portfolio in
any calendar year exceed the most restrictive expense limitations then in effect
under any state securities law or regulations. Under the most restrictive state
regulations currently in effect, the Adviser would be required to reimburse the
Fund for investment management fees received by the Adviser from the Fund, to
the extent that any Portfolio's aggregate ordinary operating expense (excluding
interest, taxes, brokerage fees and commissions, and extraordinary charges such
as litigation costs) exceed in any fiscal year 2.5 percent of the first
$30,000,000 of average daily net assets of such Portfolio, 2.0 percent of the
next $70,000,000 of average daily net assets of such Portfolio, and 1.5 percent
of the average daily net assets of such Portfolio in excess of $100,000,000. No
fee payments would be made to MONY America with respect to any Portfolio during
any calendar year to the extent that those payments would cause that Portfolio's
expenses to exceed the expense limitations applicable to the Portfolio.
MONY America, a wholly-owned subsidiary of MONY, is registered as an
investment adviser under the Investment Advisers Act of 1940 and, prior to
registration in 1985, had not performed services as an investment adviser. MONY
America has entered into a Services Agreement with MONY to provide it with
personnel, services, facilities, supplies, and equipment in order to carry out
many of its duties to provide investment management services under the
Investment Advisory Agreement. MONY America pays MONY for such services.
Because the Investment Advisory Agreement and the Services Agreement are
interrelated and dependent on each other, MONY may be deemed to be an investment
adviser of the Fund for certain federal regulatory purposes. MONY is registered
as an investment adviser under the Investment Advisers Act of 1940. Its
principal business address, as well as that of the Investment Adviser, is 1740
Broadway, New York, New York 10019.
Although MONY America's lack of previous experience in advising a mutual
fund might be considered a risk factor, it is anticipated that many of MONY
America's duties will be carried out by MONY and its personnel under the
Services Agreement and therefore MONY's experience as an investment manager
should also be considered. MONY is a mutual life insurance company organized
under the laws of New York in 1842 and licensed to do business in all fifty
states, the District of Columbia, Puerto Rico, the Virgin Islands and certain
Canadian provinces. MONY manages the investment of assets held in its own
general account, various separate accounts established by MONY, and the assets
of its employee thrift plan trust. From 1969 to 1981, MONY provided investment
advisory services to MONY Advisers, Inc. (a wholly-owned subsidiary of MONY)
which acted as investment adviser to The MONY Fund, Inc., a registered
diversified open-end management investment company. As of December 31, 1995,
total assets under management in the accounts managed by MONY were approximately
$18.9 billion and included common stocks with a value of approximately $773
million, long and medium term publicly-traded fixed income securities with a
value of approximately $6.5 billion, and short-term debt obligations with a
value of approximately $593 million. The size of the accounts and portfolios
managed by MONY or its personnel does not assure that a shareholder of the Fund
will realize any gain or be protected from any loss.
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The Investment Advisory Agreement was initially approved by the Fund's
Board of Directors, including a majority of the non-interested directors (as
defined by the 1940 Act), on January 2, 1985 and continuance for an additional
year was most recently approved on February 8, 1996. The Services Agreement was
similarly approved on January 2, 1985 and continuance for an additional year was
most recently approved by the Fund's Board of Directors on February 8, 1996.
Both Agreements will continue in effect if approved annually by (1) a majority
of the non-interested directors (as defined by the 1940 Act) of the Fund's Board
of Directors, and (2) a majority of the entire Board of Directors or a majority
vote of the voting shares of each Portfolio. If a majority of the voting shares
of any Portfolio vote to approve both Agreements, they will remain in effect
with respect to that Portfolio, even if they are not approved by a majority of
the voting shares of any other Portfolio or by a majority of the voting shares
of the entire Fund. The Agreements are not assignable. The Investment Advisory
Agreement may be terminated without penalty upon 60 days' notice by the Fund's
Board of Directors or by a majority vote of its shareholders, and upon 90 days'
notice by the Investment Adviser. The Services Agreement may be terminated
without penalty upon 60 days' notice by either party.
MONY America and MONY serve as investment managers or advisers in managing
their own assets and, in the case of MONY, the assets of separate accounts and
certain of its subsidiaries. In the future, MONY America and MONY may serve as
investment manager or adviser to other investment companies. When investment
opportunities arise that may be appropriate for more than one account or entity
for which MONY America or MONY serves as investment manager or adviser,
including for their own accounts, MONY America or MONY and their personnel will
not favor one over another and may allocate investments among them in an
impartial manner believed to be equitable to each entity involved. The
allocations will be based on each entity's investment objectives and its current
cash and investment positions. Because the various entities for which MONY
America or MONY acts or may act as investment manager or adviser, including for
their own accounts, have different investment objectives and positions, MONY
America or MONY may from time to time buy a particular security for one or more
such entities while at the same time it sells such securities for another.
RESPONSIBILITY FOR DAY-TO-DAY MANAGEMENT OF THE FUND
As investment adviser, MONY America is responsible for the day-to-day
management of each of the Portfolios of the Fund. Investment decisions are made
by a committee of the investment adviser.
CUSTODIAN, TRANSFER AGENT, AND DIVIDEND DISBURSING AGENT
Chemical Bank, 277 Park Avenue, New York, New York 10172 is the custodian
of the securities held by the Portfolios of the Fund, and is authorized to use
the facilities of the Depository Trust Company and the facilities of the
book-entry system for the Federal Reserve Bank. The Fund acts as its own
transfer agent and dividend-disbursing agent.
PURCHASE AND REDEMPTION OF SHARES
Shares in the Fund are currently being offered continuously, without sales
charge at the Fund level, at prices equal to the respective net asset values of
the Portfolios to MONY and MONY America for allocation to the Variable Accounts
to fund benefits payable under the Contracts described in the attached
prospectus. The Fund sells its shares through MONY Securities Corp. ("MSC")
(which acts as "principal underwriter" of the Contracts and therefore of the
shares of the Fund) to MONY and MONY America, for allocation to the Variable
Accounts. MSC is registered as a broker-dealer under the Securities Exchange Act
of 1934 and is a member of the National Association of Securities Dealers. It is
expected that there will be no distribution expenses for the Fund, other than
expenses for preparing, printing and mailing prospectuses. These expenses, and
any other distribution expenses, will be borne by MSC pursuant to an
underwriting agreement that will comply with pertinent provisions of the 1940
Act and rules of the Securities and Exchange Commission under that Act. The Fund
may at some later date also offer its shares to other separate accounts of MONY,
MONY America, or other MONY subsidiaries.
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The Fund is required to redeem all full and fractional shares of the Fund
for cash within seven days of receipt of proper notice of redemption. The
redemption price is the net asset value per share next determined after the
initial receipt of proper notice of redemption.
The right to redeem shares or to receive payment with respect to any
redemption may be suspended only (i) for any period during which trading on the
New York Stock Exchange is restricted as determined by the Securities and
Exchange Commission or when the New York Stock Exchange is closed (other than
customary weekend and holiday closings), (ii) for any period during which an
emergency exists as defined by the Securities and Exchange Commission as a
result of which disposal of a Portfolio's securities or determination of the net
asset value of each Portfolio is not reasonably practicable, and (iii) for such
other periods as the Securities and Exchange Commission may by order permit for
the protection of shareholders of each Portfolio.
DETERMINATION OF NET ASSET VALUE
The net asset value of the shares of each Portfolio will be determined by
the Investment Adviser once daily immediately after the declaration of
dividends, if any, at a time to be determined by the Fund's Board of Directors,
currently 4:00 p.m. New York City time, on each day during which the New York
Stock Exchange is open for business or on any other day in which there is
sufficient trading in the securities held by a Portfolio to result in a material
change in the value of such shares. The net asset value per share of each
Portfolio except the Money Market Portfolio is computed by adding the sum of the
value of the securities held by that Portfolio plus any cash or other assets it
holds, subtracting all its liabilities, and dividing the result by the total
number of shares outstanding of that Portfolio at such time. Expenses, including
the investment management fee payable to MONY America, are accrued daily.
High-quality, short-term debt obligations held in any of the Portfolios
with a remaining maturity of 60 days or less will be valued on an amortized-cost
basis. This means that each obligation will be valued initially at its purchase
price and thereafter by amortizing any discount or premium uniformly to
maturity, regardless of the impact of fluctuating interest rates on the market
value of the obligation. This highly practical method of valuation is in
widespread use and almost always results in a value that is extremely close to
the actual market value. The Fund's Board of Directors will review obligations
being valued under this method where credit or other factors may indicate the
method is not appropriate or where the rules of the Securities and Exchange
Commission require such examination. Short-term debt obligations with a
remaining maturity of more than 60 days will be valued in the same way as are
debt securities held in the Intermediate Term Bond, Long Term Bond and
Government Securities Portfolios, as described below in "Valuation of
Intermediate Term Bond, Long Term Bond and Government Securities Portfolios".
VALUATION OF INTERMEDIATE TERM BOND, LONG TERM BOND AND GOVERNMENT SECURITIES
PORTFOLIOS
In determining the net asset value of securities held in the Intermediate
Term Bond, Long Term Bond, and Government Securities Portfolios, securities will
be valued based on a decision as to the broadest and most representative market
for such security. The value will be based on either (i) the last available sale
price on a national securities exchange, (ii) in the absence of recorded sales,
the average of readily available closing bid and asked prices on national
securities exchanges, or (iii) the average of the quoted bid and asked prices in
the over-the-counter market. Securities or assets for which market quotations
are not readily available will be valued at fair value as determined by the
Investment Adviser under the direction of the Board of Directors of the Fund.
VALUATION OF MONEY MARKET PORTFOLIO
The net asset value of shares of the Money Market Portfolio will normally
remain at $1.00 per share, because the net investment income of this Portfolio
(including realized and unrealized gains and losses on Portfolio holdings) will
be declared as a dividend each time the Portfolio's net income is determined
(see DIVIDENDS, DISTRIBUTIONS AND TAXES, at page 18). If in the view of the
Board of Directors of the Fund it is inadvisable to continue to maintain the net
asset value of the Money Market Portfolio at $1.00 per
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share, the Board reserves the right to alter the procedure. The Fund will notify
Shareholders of any such alteration.
The Fund will value all short-term debt obligations held in the Money
Market Portfolio on an amortized-cost basis. The regulations of the Securities
and Exchange Commission (SEC) require that, as a condition for using amortized
cost valuation, the Money Market Portfolio (i) maintain a dollar-weighted
average portfolio maturity not exceeding 90 days, and (ii) limit its portfolio
investments to those United States dollar-denominated instruments determined to
present minimal credit risks and which at the time of acquisition are Eligible
Securities. Eligible Securities include any security (i) issued with, or with a
remaining maturity of, 397 days or less which is rated (or, if unrated, the
issuer of which also issues short-term securities any one of which, comparable
in priority and security, is rated) by an SEC designated statistical rating
organization in one of the two highest rating categories for short-term debt
obligations; or (ii) the issuer of which does not have any securities which have
a short term rating but which security is (x) comparable in priority and
security to a security which has been rated in one of the two highest rating
categories for short term debt obligations by an SEC designated statistical
rating organization, and (y) not a security which had an original maturity in
excess of 397 days and which received a rating as a long term debt obligation
from such a rating organization that was not within the two highest rating
categories. In the event of sizable changes in interest rates, however, the
value determined by amortized cost valuation may be higher or lower than the
price that would be received if the obligation were sold. On these occasions (if
any should occur) as a further condition to using amortized-cost valuation,
procedures have been established by the Board of Directors to determine whether
the deviation might be enough to affect the value of shares in the Money Market
Portfolio by more than one-half of one percent, and if it does, an appropriate
adjustment will be made in the value of the obligations.
SHARES IN THE FUND
The authorized capital stock of the Fund consists of 2 billion shares, par
value $.01 per share. The shares of capital stock are divided into seven
classes: Equity Income Portfolio Capital Stock (150 million shares); Equity
Growth Portfolio Capital Stock (150 million shares); Intermediate Term Bond
Portfolio Capital Stock (150 million shares); Long Term Bond Portfolio Capital
Stock (150 million shares); Government Securities Portfolio Capital Stock (150
million shares); Money Market Portfolio Capital Stock (250 million shares); and
Diversified Portfolio Capital Stock (150 million shares). The Fund may in the
future allocate some of the remaining authorized shares to these classes, or
create new classes of capital stock corresponding to new portfolios and allocate
some of the remaining authorized shares to such new classes and then issue
shares of such new classes. Each share of stock will have a pro-rata interest in
the assets of the Portfolio to which the stock of that class relates and will
have no interest in the assets of any other Portfolio. Holders of shares of any
Portfolio are entitled to redeem their shares as set forth under PURCHASE AND
REDEMPTION OF SHARES at page 15. The shares of each Portfolio, when issued, will
be fully paid and non-assessable, will have no preemptive, conversion, exchange
or similar rights, and will be freely transferable. The shares do not have
cumulative voting rights. Holders of more than 50 percent of the shares of the
Fund voting for the election of directors can, if they choose to do so, elect
all of the Fund's directors, and in such event the holders of the remaining
shares would not be able to elect any directors.
MONY provided the initial capital for each of the Fund's Portfolios. MONY
held shares attributable to its initial capital investment. At December 31,
1993, MONY had redeemed all shares attributable to its initial capital
investment, except that MONY provided $1,000,000 in capital to the Government
Securities Portfolio on November 18, 1994. Additional shares may be acquired by
MONY during the Fund's operation or any new portfolio's start-up period. The
acquisition of shares by MONY will enable the Portfolios (or any new portfolios)
to avoid an unrealistically poor investment performance that might otherwise
result because the amounts available for investment were too small, as well as
to satisfy the net worth requirements of the 1940 Act. MONY may also acquire
additional shares through dividend reinvestment in connection with the shares
acquired during the start-up period. Any shares acquired by MONY (other than for
allocation to MONY Variable Account A, MONY Variable Account L, MONY Variable
Account S, or the Keynote Series Account) will be acquired for investment and
can be disposed of only by redemption. They will not be redeemed
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by MONY until the other assets of the Portfolios are large enough so that
redemption will not have an adverse effect upon investment performance. MONY
will vote these shares in the same proportion as the shares held in the Variable
Accounts, which generally are voted in accordance with the instructions of
Contract holders.
VOTING RIGHTS
All shares of capital stock of the Fund have equal voting rights
(regardless of the net asset value per share) except that only shares of the
respective Portfolios are entitled to vote on matters concerning only that
Portfolio. Pursuant to the 1940 Act and the rules and regulations thereunder,
certain matters approved by a vote of all shareholders of the Fund may not be
binding on a Portfolio whose shareholders have not approved that matter. Each
outstanding share of each Portfolio is entitled to one vote and to participate
equally in dividends and distributions declared by that Portfolio and, upon
dissolution or liquidation, in the Portfolio's net assets after satisfying
outstanding liabilities.
The voting rights of Contract holders, and limitations on those rights, are
explained in the accompanying prospectus for the Contract. MONY and MONY America
as the owners of the assets in the Variable Accounts, are entitled to vote all
of the shares of the Fund attributable to the Variable Accounts, but they will
generally do so in accordance with the instructions of Contract holders. Under
certain circumstances, however, MONY and MONY America may disregard voting
instructions received from Contract holders. The Fund might under these
circumstances be deemed to be controlled by MONY and MONY America by virtue of
the definitions contained in the 1940 Act although the Fund disclaims that such
control exists.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund and each of its portfolios intend to qualify as "regulated
investment companies" under the applicable provisions of the Internal Revenue
Code of 1986, as amended (the "Code"). For a description of the restrictions
that apply to qualifying as a regulated investment company, see FEDERAL INCOME
TAX STATUS at page 12. Under those provisions, the Fund and each of its
portfolios will not be subject to federal income tax on the portion of its net
ordinary income and net realized capital gains that each portfolio distributes
to MONY and MONY America, for allocation to the Variable Accounts or to MONY
with respect to shares acquired with initial or additional capital. Since the
only shareholders of the Fund will be MONY and MONY America there is no
discussion in this Prospectus of the federal income tax consequences at the
shareholder level. For information concerning the federal tax consequences to
the Contract holders, see the attached prospectus for the Contracts.
The Fund intends to distribute as dividends substantially all the net
ordinary income, if any, of each Portfolio. For dividend purposes, net ordinary
income of each Portfolio, other than the Money Market Portfolio and the
short-term debt portion of any other Portfolio, consists of (i) all dividends
received (other than stock dividends), (ii) plus all interest and other ordinary
income accrued, (iii) plus all short-term capital gains realized, (iv) less the
expenses of such Portfolio (including fees payable to the Investment Adviser).
Net ordinary income of the Money Market Portfolio and the short-term debt
portion of any other Portfolio consists of (i) interest accrued and/or discount
earned (including both original issue and market discount), (ii) plus all
realized net short-term capital gains, (iii) less the expenses of the Portfolio
(including the fees payable to the Investment Adviser). Dividends on the Money
Market Portfolio will be declared and reinvested daily in additional full and
fractional shares of the Portfolio. Shares corresponding to the Money Market
Portfolio will begin accruing dividends on the day following the date on which
they are issued. Dividends from investment income of the other Portfolios will
be declared and reinvested in additional full and fractional shares annually,
although the Fund may make distributions more frequently, except that MONY may
elect to receive dividends on the shares acquired to provide operating capital
in cash.
The Fund will also declare and distribute annually before the close of its
fiscal year all net realized capital gains of each portfolio of the Fund (other
than short-term gains of the Money Market Portfolio, which are declared as
dividends daily). In determining the amount of capital gains to be distributed,
the realized capital gains and losses of each of the Portfolios are calculated
separately. This will not cause any of the Portfolios to
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have a different investment performance than it would if it were taxed, together
with the other Portfolios, as a single investment company and it will not affect
the value of Contract holders' interests under the Contracts.
The Fund and each of its Portfolios intend to declare dividends in December
of each calendar year to shareholders of record as of a specified date in such
month and distribute such dividends in January of the following calendar year.
In determining the capital gains distribution, the Fund and each of its
Portfolios will calculate net realized capital gains on the basis of the fiscal
year ending October 31 of the current calendar year.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and Treasury Regulations currently in effect. For the
complete provisions, reference should be made to the pertinent Code Sections and
Treasury Regulations. The Code and these Regulations are subject to change by
legislative, administrative or judicial actions.
SHAREHOLDER REPORTS AND INQUIRIES
The Fund will send each shareholder, at least annually, reports showing as
of a specified date the number of shares in each Portfolio credited to the
shareholder. The Fund will also send Contract holders semiannual reports showing
the financial condition of the Portfolios and the investments held in each. The
annual report may take the form of an updated copy of the Prospectus.
CALCULATION OF PERFORMANCE OF THE PORTFOLIOS
From time to time the performance of one or more of the Portfolios may be
advertised. The performance data contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each Portfolio reflects the results of that Portfolio of the Fund and recurring
charges and deductions borne by or imposed on the Portfolio. Set forth below for
each Portfolio is the manner in which the data contained in such advertisements
will be calculated.
Money Market Portfolio. The performance data for this Portfolio will
reflect the "yield" and "effective yield". The "yield" of the Portfolio refers
to the income generated by an investment in the Portfolio over the seven day
period stated in the advertisement. This income is "annualized", that is, the
amount of income generated by the investment during that week is assumed to be
generated each week over a 52-week period and is shown as a percentage of the
investment. The "effective yield" is calculated similarly, but, when annualized,
the income earned by an investment in the Portfolio is assumed to be reinvested.
The "effective yield" will be slightly higher than the "yield" because of the
compounding effect of this assumed reinvestment.
All Other Portfolios. The performance data for the Portfolios will reflect
the "yield" and "total return". The "yield" of each of the Portfolios (except
for a 7 day period for the Money Market Portfolio) refers to the income
generated by an investment in that Portfolio over the 30 day period stated in
the advertisement and is the result of dividing that income by the value of the
Portfolio. The value of each Portfolio is the average daily number of shares
outstanding multiplied by the net asset value on the last day of the period.
"Total return" for each of these Portfolios refers to the return a Shareholder
would receive during the period indicated if a $1,000 investment was made the
indicated number of years ago. It reflects investment results less charges and
deductions of the Fund. Returns for periods exceeding one year reflect the
average annual total return for such period. Total return data may also be shown
for larger investments which would reflect the average size purchase payment
made for Contracts, the purchasers of which may allocate purchase payments to
Subaccounts which purchase shares of the Portfolios of the Fund.
In addition, reference in advertisements may be made to various indices,
including, without limitation, the Standard & Poor's 500 Stock Index and the
Shearson Lehman Brothers, Government/Corporate Index, and to various ranking
services, including, without limitation, the Lipper Annuity and Closed End
Survey compiled by Lipper Analytical Services and the VARDS report compiled by
Variable Annuity Research and Data Service in order to provide the reader a
basis for comparison.
19
<PAGE> 172
ADDITIONAL INFORMATION
This Prospectus does not contain all the information set forth in the
registration statement, certain portions of which have been omitted pursuant to
the rules and regulations of the Securities and Exchange Commission. The omitted
information may be obtained from the Commission's principal office in
Washington, D.C., upon payment of the fees prescribed by the Commission.
For further information, including the Statement of Additional Information,
shareholders may also contact the Fund's office at the address or at the phone
number set forth on the cover of this Prospectus.
20
<PAGE> 173
APPENDIX A
SECURITIES IN WHICH THE MONEY MARKET
PORTFOLIO MAY CURRENTLY INVEST
The Money Market Portfolio, and the other Portfolios to the extent their
investment policies so provide, may invest in the following short-term, debt
securities regularly bought and sold by financial institutions:
1. U.S. Treasury Bills, other obligations issued or guaranteed by the
U.S. Government, obligations of U.S. agencies or instrumentalities which
are backed by the U.S. Treasury, and obligations issued or guaranteed by
U.S. agencies or instrumentalities and backed solely by the issuing agency
or instrumentality. These are debt securities (including bills,
certificates of indebtedness, notes, and bonds) issued or guaranteed by the
U.S. Treasury or by an agency or instrumentality of the U.S. Government
that is established under the authority of an act of Congress. Such
agencies or instrumentalities include, but are not limited to, the Federal
National Mortgage Association, the Federal Farm Credit Bank, the Federal
Home Loan Bank and the Government National Mortgage Association. Although
all obligations of agencies and instrumentalities are not direct
obligations of the U.S. Treasury, payment of the interest and principal on
them is generally backed directly or indirectly by the U.S. Treasury. This
support can range from the backing of the full faith and credit of the
United States, to U.S. Treasury guarantees, or to the backing solely of the
issuing agency or instrumentality itself.
2. Obligations (including certificates of deposit, bankers'
acceptances and time deposits) of any bank organized under the laws of the
United States or any state thereof or of foreign branches of such banks or
foreign banks, provided that such bank has, at the time of the Portfolio's
investment, total assets of at least $1 billion or the equivalent. The term
"certificates of deposit" includes both Eurodollar certificates of deposit,
which are traded in the over-the-counter market, and Eurodollar time
deposits, for which there is generally not a market. "Eurodollars" are
dollars deposited in banks outside the United States. An investment in
Eurodollar instruments involves risks that are different in some respects
from an investment in debt obligations of domestic issuers, including
future political and economic developments such as possible expropriation
or confiscatory taxation that might adversely affect the payment of
principal and interest on the Eurodollar instruments. In addition, foreign
branches of domestic banks and foreign banks may not be subject to the same
accounting, auditing and financial standards and requirements as domestic
banks. Finally, in the event of default, judgments against a foreign branch
or foreign bank might be difficult to obtain or enforce.
"Certificates of deposit" are certificates evidencing the indebtedness
of a commercial bank to repay funds deposited with it for a definite period
of time (usually from 14 days to one year). "Bankers' acceptances" are
credit instruments evidencing the obligation of a bank to pay a draft which
has been drawn on it by a customer. These instruments reflect the
obligation both of the bank and of the drawer to pay the face amount of the
instrument upon maturity. "Time deposits" are non-negotiable deposits in a
bank for a fixed period of time.
3. Commercial paper issued by domestic corporations which at the date
of investment is rated (a) "high quality" by Moody's Investors Service,
Inc. ("Moody's") or Standard & Poor's Corporation ("S&P"), provided that in
no event will the Portfolio invest in commercial paper rated lower than
Prime 2 by Moody's or A-2 by S&P or, (b) if not rated, issued by domestic
corporations which have an outstanding senior long-term debt issue rated Aa
or better by Moody's or AA or better by S&P. See Appendix B for an
explanation of the ratings issued by Moody's and S&P. "Commercial paper"
consists of short-term (usually from 1 to 270 days) unsecured promissory
notes issued by corporations in order to finance their current operations.
4. Other corporate obligations issued by domestic corporations which
at the date of investment are rated Aa or better by Moody's or AA or better
by S&P. See Appendix B for rating information. "Corporate obligations" are
bonds and notes issued by corporations and other business organizations,
including business trusts, in order to finance their long-term credit
needs.
5. Repurchase Agreements. When the Money Market Portfolio purchases
money market securities of the types described above, it may on occasion
enter into a repurchase agreement with the seller wherein the seller and
the buyer agree at the time of sale to a repurchase of the security at a
mutually agreed upon
A-1
<PAGE> 174
time and price. The period of maturity is usually quite short, possibly
overnight or a few days, although it may extend over a number of months.
The resale price is in excess of the purchase price, reflecting an
agreed-upon market rate of interest effective for the period of time the
Portfolio's money is invested in the security, and is not related to the
coupon rate of the purchased security. Repurchase agreements may be
considered loans of money to the seller of the underlying security, which
are collateralized by the securities underlying the repurchase agreement.
The Fund will not enter into repurchase agreements unless the agreement is
"fully collateralized," i.e., the value of the securities is, and during
the entire term of the agreement remains, at least equal to the amount of
the "loan" including accrued interest. The Fund's custodian bank will take
possession of the securities underlying the agreement, and the Fund will
value them daily to assure that this condition is met. The Fund has adopted
standards for the parties with whom it will enter into repurchase
agreements which it believes are reasonably designed to assure that such a
party presents no serious risk of becoming involved in bankruptcy
proceedings within the time frame contemplated by the repurchase agreement.
In the event that a seller defaults on a repurchase agreement, the Fund may
incur a loss in the market value of the collateral, as well as disposition
costs; and, if a party with whom the Fund had entered into a repurchase
agreement becomes involved in bankruptcy proceedings, the Fund's ability to
realize on the collateral may be limited or delayed and a loss may be
incurred if the collateral security of the repurchase agreement declines in
value during the bankruptcy proceedings.
6. Reverse Repurchase Agreements. The Portfolio may enter into reverse
repurchase agreements with banks, which agreements have the characteristics
of borrowing and involve the sale of securities held by the Portfolio with
an agreement to repurchase the securities at an agreed-upon price and date,
which reflect a rate of interest paid for the use of funds for the period.
Generally, the effect of such a transaction is that the Portfolio can
recover all or most of the cash invested in the securities involved during
the term of the reverse repurchase agreement, while in many cases it will
be able to keep some of the interest income associated with those
securities. Such transactions are only advantageous if the Portfolio has an
opportunity to earn a greater rate of interest on the cash derived from the
transaction than the interest cost of obtaining that cash. The Portfolio
may be unable to realize a return from the use of the proceeds equal to or
greater than the interest required to be paid. Opportunities to achieve
this advantage may not always be available, and the Portfolio intends only
to use the reverse repurchase technique when it appears to be to its
advantage to do so. The use of reverse repurchase agreements may magnify
any increase or decrease in the value of the Portfolio's securities. The
Fund's custodian bank will maintain in a separate account securities of the
Portfolio that have a value equal to or greater than the Portfolio's
commitments under reverse repurchase agreements.
Notwithstanding the above, it is the present intention of the Fund that the
Money Market Portfolio continue to qualify under the requirements of Rule 2a-7
of the Securities and Exchange Commission ("SEC") which permits the Portfolio to
use the amortized cost method of valuation to calculate net asset value if the
Portfolio's funds are invested in accordance with its guidelines. Briefly, those
guidelines require investment in Eligible Securities (see VALUATION OF MONEY
MARKET PORTFOLIO at page 16 for a discussion of Eligible Securities) which
qualify as First or Second Tier securities under the Rule. First Tier securities
include any Eligible Security which (i) is rated (or, if unrated, the issuer of
which also issues short-term securities any one of which, comparable in priority
and security, is rated) by an SEC designated statistical rating organization in
its highest category for short-term debt obligations, or (ii) is a security
having a remaining maturity of 397 days or less when acquired but which has an
original maturity in excess of 397 days and which is now comparable in priority
and security to a short-term security of the same issuer which is rated by an
SEC designated statistical rating organization in the highest category for
short-term debt obligations; or (iii) is unrated as a short-term security (and,
if rated as a long-term security, received a rating in one of the two highest
categories) and is issued by an issuer which has no rated short-term debt
obligations comparable in priority and security. A Second Tier security is any
Eligible Security (see VALUATION OF MONEY MARKET PORTFOLIO at page 16 for a
discussion of Eligible Securities) which is not a First Tier security.
A-2
<PAGE> 175
APPENDIX B
DEBT RATINGS
Moody's Investors Service, Inc. describes the four highest grades of
corporate debt securities and "Prime-1" and "Prime-2" commercial papers as
follows:
BONDS:
<TABLE>
<S> <C>
Aaa -- Bonds which are rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt edge."
Interest payments are protected by a large or by an exceptionally stable margin
and principal is secure. While the various protective elements are likely to
change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issue.
Aa -- Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection may
not be as large as in Aaa securities or fluctuation of protective elements may be
of greater amplitude or there may be other elements present which make the long
term risks appear somewhat larger than in Aaa securities.
A -- Bonds which are rated A possess many favorable investment attributes and are to
be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate but elements may be present which
suggest a susceptibility to impairment sometime in the future.
Baa -- Bonds which are rated Baa are considered as medium grade obligations, i.e., they
are neither highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
</TABLE>
COMMERCIAL PAPER:
Issuers rated Prime-1 (or related supporting institutions) have a superior
capacity for repayment of short-term promissory obligations. Prime-1 repayment
capacity will normally be evidenced by the following characteristics:
- Leading market positions in well-established industries.
- High rates of return of funds employed.
- Conservative capitalization structures with moderate reliance on debt
and ample asset protection.
- Broad margins in earnings coverage of fixed financial charges and high
internal cash generation.
- Well-established access to a range of financial markets and assured
sources of alternate liquidity.
Issuers rated Prime-2 (or related supporting institutions) have a strong
capacity for repayment of short-term promissory obligations. This will normally
be evidenced by any of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, will be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.
B-1
<PAGE> 176
Standard & Poor's Corporation describes the four highest grades of
corporate debt securities and A commercial paper as follows:
BONDS:
<TABLE>
<S> <C>
AAA -- Bonds rated AAA are highest grade obligations. They possess the ultimate degree
of protection as to principal and interest. Marketwise, they move with interest
rates, and hence provide the maximum safety on all counts.
AA -- Bonds rated AA also qualify as high grade options and in the majority of
instances differ from AAA issues only in small degree. Here, too, prices move
with the long term money market.
A -- Bonds rated A are regarded as upper medium grade. They have considerable
investment strength but are not entirely free from adverse effects of changes in
economic and trade conditions. Interest and principal are regarded as safe. They
predominantly reflect money rates in their market behavior, but to some extent,
also economic conditions.
BBB -- The BBB, or medium grade category, is borderline between definitely sound
obligations and those where the speculative element begins to predominate. These
bonds have adequate asset coverage and normally are protected by satisfactory
earnings. Their susceptibility to changing conditions, particularly to
depressions, necessitates constant watching. Marketwise, the bonds are more
responsive to business and trade conditions than to interest rates. This group is
the lowest which qualifies for commercial bank investment.
</TABLE>
COMMERCIAL PAPER:
Commercial paper rated A by Standard & Poor's Corporation has the following
characteristics: Liquidity ratios are better than the industry average. Long
term senior debt rating is A or better. In some cases BBB credits may be
acceptable. The issuer has access to at least two additional channels of
borrowing. Basic earnings and cash flow have an upward trend with allowances
made for unusual circumstances. Typically, the issuer's industry is well
established, the issuer has a strong position within its industry and the
reliability and quality of management are unquestioned. Issues rated A are
further referred to by use of numbers 1, 2 and 3 to denote relative strength
within this classification.
B-2
<PAGE> 177
ENTERPRISE ACCUMULATION TRUST
ATLANTA FINANCIAL CENTER
3343 PEACHTREE ROAD, N.E., STE. 450
ATLANTA, GEORGIA 30326-1022
(800) 432-4320
------------------------
ENTERPRISE ACCUMULATION TRUST (the "Fund") is a registered open-end
diversified management investment company offering a broad range of investment
alternatives through its five Portfolios. It permits an investor the flexibility
of choosing among different investment objectives, through the following
Portfolios, each of which is a separate series of shares of beneficial interest
of the Fund ("Shares"). The Fund's principal Investment Adviser, Enterprise
Capital Management, Inc., selects, subject to shareholder approval, separate
sub-advisers referred to as "Portfolio Managers" that provide investment advice
for the Portfolios and that are selected on the basis of able investment
performance in their respective areas of responsibilities. The investment
objective of each Portfolio is as follows:
EQUITY PORTFOLIO: Seeks long term capital appreciation through
investment in a diversified portfolio of equity securities selected on the
basis of a value-oriented approach to investing.
SMALL CAP PORTFOLIO: Seeks capital appreciation through investment in
a diversified portfolio of equity securities of companies with market
capitalizations of under $1 billion.
INTERNATIONAL GROWTH PORTFOLIO: Seeks capital appreciation, primarily
through a diversified portfolio of non-United States equity securities.
MANAGED PORTFOLIO: Seeks growth of capital over time through
investment in a portfolio consisting of common stocks, bonds and cash
equivalents, the percentages of which will vary based on management's
assessments of relative investment values.
HIGH-YIELD BOND PORTFOLIO: Seeks maximum current income, primarily
from debt securities that are rated Ba or lower by Moody's Investor
Service, Inc. or BB by Standard & Poor's Corporation ("S&P").
Shares of the Fund are currently sold to variable accounts of The Mutual
Life Insurance Company of New York ("MONY") and a life insurance company
affiliate of MONY that were established to fund certain Flexible Payment
Variable Annuity and Life Insurance contracts (the "Contracts"). These variable
accounts (the "Variable Accounts") invest in Shares of the Fund in accordance
with allocation instructions received from holders (the "Contractholders") of
the Contracts. Allocation rights are further described in the attached
prospectus for the Contracts. The Variable Accounts will redeem Shares to the
extent necessary to provide benefits under the Contracts. In the future, Shares
may be sold to certain other variable accounts and affiliated entities of MONY.
It is possible, although not presently anticipated, that a material conflict
could arise between and among the various variable accounts which invest in the
Fund. Such conflict could cause the liquidation of assets of one or more of the
Fund Portfolios to raise cash at times not otherwise deemed advantageous by the
Investment Adviser or Portfolio Managers. See "Management of the Fund," p. 17.
This Prospectus sets forth concisely information about the Fund that a
prospective investor ought to know before investing, and offers of sales of
shares of the Fund, must be accompanied by a current prospectus for one of the
Contracts and both should be retained for future reference. A Statement of
Additional Information dated July 12, 1996 has been filed with the Securities
and Exchange Commission and is available without charge upon written request to
MONY, Maildrop 76-18, 500 Frank W. Burr Blvd., Teaneck, N.J. 07666-6888
[1-800-487-6669]. The Statement of Additional Information (which is incorporated
in its entirety by reference in this Prospectus) contains more detailed
information about the Fund and its management, including more complete
information about certain risk factors.
------------------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
ENTERPRISE CAPITAL MANAGEMENT, INC.
INVESTMENT ADVISER
Prospectus dated July 12, 1996
IN PURSUING ITS INVESTMENT OBJECTIVE, THE HIGH-YIELD BOND PORTFOLIO MAY
INVEST SIGNIFICANTLY IN LOWER-RATED BONDS, COMMONLY REFERRED TO AS "JUNK BONDS."
BONDS OF THIS TYPE ARE CONSIDERED TO BE SPECULATIVE WITH REGARD TO THE PAYMENT
OF INTEREST AND RETURN OF PRINCIPAL. INVESTMENT IN THESE TYPES OF SECURITIES
HAVE SPECIAL RISKS AND THEREFORE, MAY NOT BE SUITABLE FOR ALL INVESTORS.
INVESTORS SHOULD CAREFULLY ASSESS THE RISKS ASSOCIATED WITH AN INVESTMENT IN
THIS PORTFOLIO. PLEASE REFER TO PAGE 15 OF THE PROSPECTUS.
<PAGE> 178
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Prospectus Summary.................................................................... 1
Financial Highlights.................................................................. 3
Equity Portfolio...................................................................... 4
Small Cap Portfolio................................................................... 5
Managed Portfolio..................................................................... 6
International Growth Portfolio........................................................ 7
High-Yield Bond Portfolio............................................................. 8
Investment Objectives and Policies.................................................... 9
Investment Techniques and Associated Risks............................................ 12
Investment Restrictions............................................................... 17
Management of the Fund................................................................ 17
Determination of Net Asset Value...................................................... 19
Purchase of Shares.................................................................... 20
Redemption of Shares.................................................................. 20
State Law Restrictions................................................................ 20
Dividends, Distributions and Taxes.................................................... 21
Calculation of Performance............................................................ 21
Additional Information................................................................ 22
</TABLE>
i
<PAGE> 179
PROSPECTUS SUMMARY
The Fund............................ The Fund is a Massachusetts business
trust which issues its shares in
series as is designated as a
"Portfolio". Together, the five
Portfolios are designed to enable an
investor to choose a number of
investment alternatives to achieve
financial goals and to shift assets
conveniently among Portfolios when
and if investment aims or perception
of the marketplace change.
Investment Objectives and
Restrictions........................ The investment objective of each of the
Portfolios is set forth on the cover
page of this Prospectus. These
objectives are described in more
detail under the heading "Investment
Objectives and Policies." Although
each Portfolio will be actively
managed by experienced professionals,
there can be no assurance that the
objectives will be achieved.
The value of the portfolio securities
of each Portfolio and therefore the
Portfolio's net asset value per share
may increase or decrease because of
varying factors. There are generally
two types of risk associated with an
investment in one or more of the
Portfolios: market (or interest rate)
risk and financial (or credit) risk.
Market risk for equities is the risk
associated with movement of the stock
market in general. Market risk for
fixed income securities is the risk
that interest rates will change,
thereby affecting their value.
Generally, the value of fixed income
securities declines as interest rates
rise, and conversely, their value
rises as interest rates decline. The
second type of risk, financial or
credit risk, is associated with the
financial condition and profitability
of an individual equity or fixed
income issuer. The financial risk in
owning equities is related to
earnings stability and overall
financial soundness of individual
issuers and of issuers collectively
which are part of a particular
industry. For fixed income
securities, credit risk relates to
the financial ability of an issuer to
make periodic interest payments and
ultimately repay the principal at
maturity. The high-yield bonds in
which the High-Yield Bond Portfolio
will invest are subject to greater
risks than lower yielding, higher
rated fixed income securities. (See
"Additional Information on Investment
Objectives and Policies" for risk
aspects of the individual
Portfolios).
Investment Adviser.................. Enterprise Capital Management, Inc.
("Enterprise Capital"), the
investment adviser of each of the
Portfolios, serves also as investment
adviser to The Enterprise Group of
Funds, Inc., a registered investment
company consisting of approximately
$737 mil-
<PAGE> 180
lion of assets under management at
March 31, 1996. Enterprise Capital is
a subsidiary of The Mutual Life
Insurance Company of New York
("MONY") and has approximately $2.62
billion total assets under
management. Portfolio Managers are as
follows: OpCap Advisors for the
Equity, Small Cap and Managed
Portfolios; Brinson Partners, Inc.
for the International Growth
Portfolio; and Caywood-Scholl Capital
Management, Inc. for the High-Yield
Bond Portfolio.
Management Fee...................... Enterprise Capital receives a monthly
fee and pays a portion of such fee to
the respective Portfolio Manager from
each Portfolio at varying annual
percentage rates of average daily net
assets, as follows: .80 percent of
average daily net assets for the
Equity, Small Cap, and Managed
Portfolios up to $400 million; .75
percent for assets from $400 million
to $800 million; and .70 percent for
assets in excess of $800 million; .60
percent of average daily net assets
for the High-Yield Bond Portfolio and
.85 percent of average daily net
assets for the International Growth
Portfolio.
Purchases and Redemption of
Shares.............................. Currently, shares of the Fund are sold
at their net asset value per share,
without sales charge, for allocation
to the Variable Accounts as the
underlying investment for the
Contracts. Accordingly, the interest
of the Contractholder with respect to
the Fund is subject to the terms of
the Contract as described in the
accompanying Prospectus for the
Contract, which should be reviewed
carefully by a person considering the
purchase of a Contract. That
Prospectus describes the relationship
between increases or decreases in the
net asset value of Fund shares and
any distributions on such shares, and
the benefits provided under a
Contract. The rights of the Variable
Accounts as shareholders of the Fund
should be distinguished from the
rights of a Contractholder which are
described in the Contract. As long as
shares of the Fund are sold for
allocation to the Variable Accounts,
the terms "shareholder" or
"shareholders" in this Prospectus
shall refer to the Variable Accounts.
Shares are redeemed at their
respective net asset values as next
determined after receipt of proper
notice of redemption.
The above is qualified in its entirety by the detailed information
appearing elsewhere in this Prospectus, the Statement of Additional Information,
and the accompanying Prospectus for the Contract.
2
<PAGE> 181
FINANCIAL HIGHLIGHTS
The financial highlights for each of the years presented below have been
audited by the Fund's independent accountants. This information should be read
in conjunction with the Trust's 1995 financial statements, financial highlights
and related notes thereto included in the Statement of Additional Information.
Further information regarding the performance of each Portfolio is available in
the Fund's Annual Report. Annual Reports may be obtained without charge upon
written request to MONY, Maildrop 76-18, 500 Frank W. Burr Blvd., Teaneck, N.J.
07666-6888 (1-800-487-6669).
3
<PAGE> 182
ENTERPRISE ACCUMULATION TRUST
EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988
-------- ------- ------- ------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year....................... $ 18.14 $ 17.95 $ 17.23 $ 15.24 $ 11.92 $ 12.50 $10.19 $10.00#
-------- ------- ------- ------- ------- ------- ------ ------
Income from investment
operations:
Net investment income...... 0.33 0.28 0.18 0.17 0.24 0.30 0.26 0.00
Net realized and unrealized
gain (loss) on
investments.............. 6.38 0.41 1.13 2.49 3.42 (0.58) 2.05 0.19
-------- ------- ------- ------- ------- ------- ------ ------
Total from investment
operations......... 6.71 0.69 1.31 2.66 3.66 (0.28) 2.31 0.19
-------- ------- ------- ------- ------- ------- ------ ------
Less dividends and
distributions:
Dividends to shareholders
from net investment
income................... (0.49) (0.18) (0.17) (0.24) (0.34) (0.21) 0.00 0.00
Distributions to
shareholders from net
realized capital gains... (1.01) (0.32) (0.42) (0.43) 0.00 (0.09) 0.00 0.00
-------- ------- ------- ------- ------- ------- ------ ------
Total dividends and
distributions...... (1.50) (0.50) (0.59) (0.67) (0.34) (0.30) 0.00 0.00
-------- ------- ------- ------- ------- ------- ------ ------
Net asset value, end of
year....................... $ 23.35 $ 18.14 $ 17.95 $ 17.23 $ 15.24 $ 11.92 $12.50 $10.19
======== ======= ======= ======= ======= ======= ====== ======
Total return......... 38.4% 3.9% 7.8% 17.9% 31.2% (2.2)% 22.7% 1.9%
-------- ------- ------- ------- ------- ------- ------ ------
Net assets, end of year
(000)...................... $167,963 $88,583 $66,172 $33,581 $17,221 $10,248 $5,997 $1,059
-------- ------- ------- ------- ------- ------- ------ ------
Ratio of net operating
expenses to average net
assets..................... 0.69%(1) 0.67%(1) 0.72% 0.79% 0.86% 0.92%(1) 0.85%(1) 0.85%**(1)
-------- ------- ------- ------- ------- ------- ------ ------
Ratio of net investment
income to average net
assets..................... 1.94%(1) 1.81%(1) 1.47% 1.48% 2.09% 3.45%(1) 3.93%(1) 0.10%**(1)
-------- ------- ------- ------- ------- ------- ------ ------
Portfolio turnover........... 29% 38% 15% 27% 41% 49% 28% 0%
-------- ------- ------- ------- ------- ------- ------ ------
</TABLE>
- ---------------
# Initial public offering price per share.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been .72% and 1.91%,
respectively in 1995; .69% and 1.79%, respectively, in 1994; .99% and 3.38%,
respectively, in 1990; 1.54% and 3.24%, respectively, in 1989; and 6.79% and
(5.84)% respectively, for the period 8/1/88 - 12/31/88.
4
<PAGE> 183
ENTERPRISE ACCUMULATION TRUST
SMALL CAP PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988
-------- -------- -------- ------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of year.................. $ 17.56 $ 18.62 $ 16.72 $ 15.11 $10.46 $12.06 $10.19 $10.00#
-------- -------- -------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income.... 0.32 0.19 0.10 0.09 0.09 0.31 0.17 0.00
Net realized and
unrealized gain (loss)
on investments......... 1.75 (0.16) 2.98 3.05 4.86 (1.47) 1.70 0.19
-------- -------- -------- -------- -------- -------- -------- --------
Total from
investment
operations....... 2.07 0.03 3.08 3.14 4.95 (1.16) 1.87 0.19
-------- -------- -------- -------- -------- -------- -------- --------
Less dividends and
distributions:
Dividends to shareholders
from net investment
income................. (0.40) (0.10) (0.10) (0.10) (0.30) (0.15) 0.00 0.00
Distributions to
shareholders from net
realized capital
gains.................. (0.75) (0.99) (1.08) (1.43) 0.00 (0.29) 0.00 0.00
-------- -------- -------- -------- -------- -------- -------- --------
Total dividends and
distributions.... (1.15) (1.09) (1.18) (1.53) (0.30) (0.44) 0.00 0.00
-------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of
year..................... $ 18.48 $ 17.56 $ 18.62 $ 16.72 $15.11 $10.46 $12.06 $10.19
======== ======== ======== ======== ======== ======== ======== ========
Total return....... 12.3% 0.0% 19.5% 21.5% 48.1% (9.8)% 18.4% 1.9%
-------- -------- -------- -------- -------- -------- -------- --------
Net assets, end of year
(000).................... $166,061 $144,880 $105,635 $31,211 $9,777 $2,744 $2,302 $ 571
-------- -------- -------- -------- -------- -------- -------- --------
Ratio of net operating
expenses to average net
assets................... 0.69%(1) 0.66%(1) 0.74% 0.86% 1.00%(1) 1.02%(1) 0.95%(1) 0.95%**(1)
-------- -------- -------- -------- -------- -------- -------- --------
Ratio of net investment
income to average net
assets................... 1.86%(1) 1.30%(1) 1.06% 1.05% 1.41%(1) 3.32%(1) 2.48%(1) 0.23%**(1)
-------- -------- -------- -------- -------- -------- -------- --------
Portfolio turnover......... 70% 58% 70% 105% 120% 44% 58% 0%
-------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
- ---------------
# Initial public offering price per share.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been .72% and 1.83%,
respectively in 1995; .67% and 1.29%, respectively, in 1994; 1.19% and
1.22%, respectively, in 1991; 1.62% and 2.38%, respectively, in 1990; 2.38%
and 1.05%, respectively, in 1989; and 9.22% and (8.04)%, respectively, for
the period 8/1/88 - 12/31/88.
5
<PAGE> 184
ENTERPRISE ACCUMULATION TRUST
MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988
---------- -------- -------- -------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year...... $ 20.82 $ 21.35 $ 20.11 $ 17.56 $ 12.43 $ 13.80 $ 10.44 $10.00#
---------- -------- -------- -------- ------- ------- ------- ------
Income from investment
operations:
Net investment
income............... 0.40 0.40 0.46 0.25 0.29 0.31 0.34 0.05
Net realized and
unrealized gain
(loss) on
investments.......... 8.97 0.15 1.55 2.95 5.31 (0.81) 3.06 0.39
---------- -------- -------- -------- ------- ------- ------- ------
Total from
investment
operations..... 9.37 0.55 2.01 3.20 5.60 (0.50) 3.40 0.44
---------- -------- -------- -------- ------- ------- ------- ------
Less dividends and
distributions:
Dividends to
shareholders from net
investment income.... (0.75) (0.46) (0.24) (0.27) (0.39) (0.28) (0.03) 0.00
Distributions to
shareholders from net
realized capital
gains................ (1.38) (0.62) (0.53) (0.38) (0.08) (0.59) (0.01) 0.00
---------- -------- -------- -------- ------- ------- ------- ------
Total dividends
and
distributions... (2.13) (1.08) (0.77) (0.65) (0.47) (0.87) (0.04) 0.00
---------- -------- -------- -------- ------- ------- ------- ------
Net asset value, end of
year................... $ 28.06 $ 20.82 $ 21.35 $ 20.11 $ 17.56 $ 12.43 $ 13.80 $10.44
========== ======== ======== ======== ======= ======= ======= ======
Total return..... 46.9% 2.6% 10.4% 18.6% 46.0% (3.6)% 32.6% 4.4%
---------- -------- -------- -------- ------- ------- ------- ------
Net assets, end of year
(000).................. $1,264,718 $689,252 $525,163 $236,175 $98,468 $45,955 $22,459 $3,238
---------- -------- -------- -------- ------- ------- ------- ------
Ratio of net operating
expenses to average net
assets................. 0.67%(1) 0.64%(1) 0.66% 0.69% 0.73% 0.80% 0.85%(1) 0.85%**(1)
---------- -------- -------- -------- ------- ------- ------- ------
Ratio of net investment
income to average net
assets................. 1.80%(1) 2.23%(1) 3.21% 2.06% 2.42% 3.79% 5.10%(1) 3.88%**(1)
---------- -------- -------- -------- ------- ------- ------- ------
Portfolio turnover....... 31% 33% 21% 23% 57% 112% 196% 38%
---------- -------- -------- -------- ------- ------- ------- ------
</TABLE>
- ---------------
# Initial public offering price per share.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been .67% and 1.80%,
respectively, in 1995; .64% and 2.23%, respectively, in 1994; 1.05% and
4.09%, respectively, in 1989; and 3.37% and 1.36% for the period
8/1/88 - 12/31/88.
6
<PAGE> 185
ENTERPRISE ACCUMULATION TRUST
INTERNATIONAL GROWTH PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
PERIOD OF
NOVEMBER 18, 1994
YEAR ENDED -
DECEMBER 31,1995 DECEMBER 31,1994
----------------- -----------------
<S> <C> <C>
Net asset value, beginning of year................... $ 4.96 $ 5.00
----- -----
Income from investment operations:
Net investment income.............................. 0.04 0.00
Net realized and unrealized gain (loss) on
investments..................................... 0.67 (0.04)
----- -----
Total from investment operations........... 0.71 (0.04)
----- -----
Less dividends and distributions:
Dividends to shareholders from net investment
income.......................................... (0.04) 0.00
Distributions to shareholders from net realized
capital gains................................... (0.24) 0.00
----- -----
Total dividends and distributions.......... (0.28) 0.00
----- -----
Net asset value, end of year......................... $ 5.39 $ 4.96
----- -----
Total return............................... 14.6% (0.8)%*
----- -----
Net assets, end of year (000)........................ $18,598 $ 3,247
===== =====
Ratio of net operating expenses to average net
assets............................................. 1.55%(1) 1.55%**(1)
----- -----
Ratio of net investment income to average net
assets............................................. 1.17%(1) 0.80%**(1)
----- -----
Portfolio turnover................................... 27% 0%
----- -----
</TABLE>
- ---------------
* Not annualized.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been 2.21% and .51%,
respectively, in 1995; and 8.85% and (6.34%), respectively, in 1994.
7
<PAGE> 186
ENTERPRISE ACCUMULATION TRUST
HIGH-YIELD BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
PERIOD OF
YEAR ENDED NOVEMBER 18, 1994 -
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -------------------
<S> <C> <C>
Net asset value, beginning of year..................... $ 4.98 $ 5.00
------- ------
Income from investment operations:
Net investment income................................ 0.45 0.04
Net realized and unrealized gain (loss) on
investments....................................... 0.35 (0.01)
------- ------
Total from investment operations............. 0.80 0.03
------- ------
Less dividends and distributions:
Dividends to shareholders from net investment
income............................................ (0.45) (0.05)
Distributions to shareholders from net realized
capital gains..................................... (0.02) 0.00
------- ------
Total dividends and distributions............ (0.47) (0.05)
------- ------
Net asset value, end of year........................... $ 5.31 $ 4.98
======= ======
Total return................................. 16.6% 0.5%*
------- ------
Net assets, end of year (000).......................... $15,223 $ 1,421
------- ------
Ratio of net operating expenses to average net
assets............................................... 0.85%(1) 0.85%**(1)
------- ------
Ratio of net investment income to average net assets... 8.51%(1) 7.84%**(1)
------- ------
Portfolio turnover..................................... 115% 0%
------- ------
</TABLE>
- ---------------
* Not annualized.
** Annualized.
(1) During the years presented above, the Advisor voluntarily waived a portion
of its fees and reimbursed the Portfolio for a portion of its operating
expenses. If such waivers and reimbursements had not been in effect, the
ratios of net operating expenses to average net assets and the ratios of net
investment income to average net assets would have been 1.59% and 7.77%,
respectively, in 1995; and 7.0% and .80%, respectively, in 1994.
8
<PAGE> 187
INVESTMENT OBJECTIVES AND POLICIES
The investment objectives and policies of each Portfolio of the Fund are
described below. Investment objectives of each Portfolio are fundamental
policies which cannot be changed for any Portfolio without a majority vote of
the shareholders of that Portfolio; investment policies are not fundamental and
may be adjusted by the Portfolio Managers, subject to the oversight of
Enterprise Capital, at any time, usually in response to its perception of
developments in the securities markets. The extent to which a Portfolio will be
able to achieve its distinct investment objectives depend upon each Portfolio
Manager's ability to evaluate and develop the information it receives into a
successful investment program. Although each Portfolio will be managed by
experienced professionals, there can be no assurance that any Portfolio will
achieve its investment objectives. The values of the securities held in each
Portfolio will fluctuate and the net asset value per share at the time shares
are redeemed may be more or less than the net asset value per share at the time
of purchase. Investors should also refer to "Investment Techniques" for
additional information concerning the investment techniques employed for some or
all of the Portfolios.
EQUITY PORTFOLIO
The investment objective of the Equity Portfolio is long term capital
appreciation through investment in securities (primarily equity securities) of
companies that are believed by the Portfolio Manager to be undervalued in the
marketplace in relation to factors such as the companies' assets or earnings. It
is the Portfolio Manager's intention to invest in securities of companies which
in the Portfolio Manager's opinion possess one or more of the following
characteristics: undervalued assets, valuable consumer or commercial franchises,
securities valuation below peer companies, substantial and growing cash flow
and/or a favorable price to book value relationship. Investment policies aimed
at achieving the Portfolio's objective are set in a flexible framework of
securities selection which primarily includes equity securities, such as common
stocks, preferred stocks, convertible securities, rights and warrants in
proportions which vary from time to time. Under normal circumstances at least
65% of the Portfolio's assets will be invested in equity securities. The
Portfolio will invest primarily in stocks listed on the New York Stock Exchange.
In addition, it may also purchase securities listed on other domestic securities
exchanges, securities traded in the domestic over-the-counter market and foreign
securities provided that they are listed on a domestic or foreign securities
exchange or represented by American Depository Receipts listed on a domestic
securities exchange or traded in the United States over-the-counter market.
SMALL CAP PORTFOLIO
The investment objective of the Small Cap Portfolio is to seek capital
appreciation through investments in a diversified portfolio consisting primarily
of equity securities of companies with market capitalizations of under $1
billion. Smaller-capitalization companies are often under-priced for the
following reasons: (i) institutional investors, which currently represent a
majority of the trading volume in the shares of publicly traded companies, are
often less interested in such companies because in order to acquire an equity
position that is large enough to be meaningful to an institutional investor,
such an investor may be required to buy a large percentage of the company's
outstanding equity securities and (ii) such companies may not be regularly
researched by stock analysts, thereby resulting in greater discrepancies in
valuation. The Portfolio may also purchase securities in initial public
offerings, or shortly after such offerings have been completed, when the
Portfolio Manager believes that such securities have greater-than-average market
appreciation potential. Under normal circumstances at least 65% of the
Portfolio's assets will be invested in equity securities. The majority of
securities purchased by the Portfolio will be traded on the New York Stock
Exchange, the American Stock Exchange or in the over-the-counter market, and
will also include options, warrants, bonds, notes and debentures which are
convertible into or exchangeable for, or which grant a right to purchase or
sell, such securities. In addition, the Portfolio may also purchase foreign
securities provided that they are listed on a domestic or foreign securities
exchange or are represented by American Depository Receipts listed on a domestic
securities exchange or traded in the United States over-the-counter market.
In pursuing its objective, the Portfolio's strategy will be to invest in
stocks of companies with value that may not be fully reflected by current stock
price. The Portfolio Manager attempts to identify a universe of
9
<PAGE> 188
stocks for which the market has relatively low expectations as measured by
overall price relative to fundamental measures of growth and valuation. To
institute this strategy, the Portfolio Manager utilizes various proprietary
valuation tools centered around price/sales ratios to target investments in
companies whose growth potential exceeds commonly perceived expectations.
INTERNATIONAL GROWTH PORTFOLIO
The International Growth Portfolio seeks capital appreciation, primarily
through a diversified portfolio of non-United States equity securities. It is a
fundamental policy of the Portfolio that it will invest at least 80% of the
value of its assets (except when maintaining a temporary defensive position) in
equity securities of companies domiciled outside the United States. That portion
of the Portfolio not invested in equity securities is, in normal circumstances,
invested in U.S. and foreign government securities, high-grade commercial paper,
certificates of deposit, foreign currency, bankers' acceptances, cash and cash
equivalents, time deposits, repurchase agreements and similar money market
instruments, both foreign and domestic. The Portfolio may invest in convertible
debt securities of foreign issuers which are convertible into equity securities
at such time as a market for equity securities is established in the country
involved.
The Portfolio Manager's investment perspective for the Portfolio is to
invest in the equity securities of non-U.S. markets and companies which are
believed to be undervalued based upon internal research and proprietary
valuation systems. This international equity strategy reflects the Portfolio
Manager's decisions concerning the relative attractiveness of asset classes, the
individual international equity markets, industries across and within those
markets, other common risk factors within those markets and individual
international companies. The Portfolio Manager initially identifies those
securities which it believes to be undervalued in relation to the issuer's
assets, cash flow, earnings and revenues. The relative performance of foreign
currencies is an important factor in the Portfolio's performance. The Portfolio
Manager may manage the Portfolio's exposure to various currencies to take
advantage of different yield, risk and return characteristics. The Portfolio
Manager's proprietary valuation model determines which securities are potential
candidates for inclusion in the Portfolio.
The benchmark for the fund is the Morgan Stanley Capital International
Non-U.S. Equity (Free) Index (the "Benchmark"). The Benchmark is a market driven
broad based index which includes non-U.S. equity markets in terms of
capitalization and performance. The Benchmark is designed to provide a
representative total return for all major stock exchanges located outside the
U.S. From time to time, the Portfolio Manager may substitute securities in an
equivalent index when it believes that such securities in the index more
accurately reflect the relevant international market.
As a general matter, the Portfolio Manager will purchase for the Fund only
securities contained in the underlying index relevant to the Benchmark. The
Portfolio Manager will attempt to enhance the long-term return and risk
performance of the Portfolio relative to the Benchmark by deviating from the
normal Benchmark mix of country allocation and currencies in reaction to
discrepancies between current market prices and fundamental values. The active
management process is intended to produce a superior performance relative to the
Benchmark index.
The Portfolio Manager will purchase securities of companies domiciled in a
minimum of eight to 12 countries outside the United States.
MANAGED PORTFOLIO
The investment objective of the Managed Portfolio is to achieve growth of
capital over time through investment in a portfolio consisting of common stocks,
bonds and cash equivalents, the percentages of which will vary based on the
Portfolio Manager's assessments of the relative outlook for such investments. In
seeking to achieve its investment objective, the types of equity securities in
which the Portfolio may invest are likely to be the same as those in which the
Equity Portfolio invests, although securities of the type in which the Small Cap
Portfolio invests may, to a lesser extent, be included. Debt securities are
expected to be predominantly investment grade intermediate to long term U.S.
Government and corporate debt, although the Portfolio will also invest in
high-quality short-term money market and cash equivalent securities and may
invest almost all
10
<PAGE> 189
of its assets in such securities when the Portfolio Manager deems it advisable
in order to preserve capital. In addition, the Portfolio may also purchase
foreign securities provided that they are listed on a domestic or foreign
securities exchange or are represented by American Depository Receipts listed on
a domestic securities exchange or traded in the United States over-the-counter
market.
The allocation of the Portfolio's assets among the different types of
permitted investments will vary from time to time based upon the Portfolio
Manager's evaluation of economic and market trends and its perception of the
relative values available from such types of securities at any given time. There
is neither a minimum nor a maximum percentage of the Portfolio's assets that
may, at any given time, be invested in any of the types of investments
identified above. Consequently, while the Portfolio will earn income to the
extent it is invested in bonds or cash equivalents, the Portfolio does not have
any specific income objective.
HIGH-YIELD BOND PORTFOLIO
The investment objective of the High-Yield Bond Portfolio is maximum
current income, primarily from debt securities that are rated Ba or lower by
Moody's or BB or lower by S&P. It is a fundamental policy of the Portfolio that
it will invest at least 80% of the value of its total assets (except when
maintaining a temporary defensive position) in high-yielding, income-producing
corporate bonds that are rated B3 or better by Moody's or B- or better by S&P.
The corporate bonds in which the Portfolio invests are high-yielding but
normally carry a greater credit risk than bonds with higher ratings. In
addition, such bonds may involve greater volatility of price than higher-rated
bonds. For a discussion of High-Yield Securities and related risks, see
"Investment Techniques and Associated Risks -- High-Yield Securities" at page
15.
The Portfolio's investments are selected by the Portfolio Manager after
careful examination of the economic outlook to determine those industries that
appear favorable for investments. Industries going through a perceived decline
generally are not candidates for selection. After the industries are selected,
bonds of issuers within those industries are selected based on their
creditworthiness, their yields in relation to their credit and the relative
strength of their common stock prices. Companies near or in bankruptcy are not
considered for investment. The Portfolio does not purchase bonds which are rated
Ca or lower by Moody's or CC or lower by S&P or which, if unrated, in the
judgment of the Portfolio Manager have characteristics of such lower-grade
bonds. Should an investment purchased with the above-described credit quality
requisites be downgraded to Ca or lower or CC or lower, the Portfolio Manager
shall have discretion to hold or liquidate the security.
Subject to the restrictions described above, under normal circumstances, up
to 20% of the Portfolio's assets may include: (1) bonds rated Caa by Moody's or
CCC by S&P; (2) unrated debt securities which, in the judgment of the Portfolio
Manager have characteristics similar to those described above; (3) convertible
debt securities; (4) puts, calls and futures as hedging devices; (5) foreign
issuer debt securities; and (6) short-term money market instruments, including
certificates of deposit, commercial paper, U.S. Government Securities and other
income-producing cash equivalents. For a discussion on options and futures and
their related risks, see "Investment Techniques and Associated Risks," at page
12.
ADDITIONAL INFORMATION ON INVESTMENT OBJECTIVES AND POLICIES
For the Equity and Small Cap Portfolios, at times when the investment
climate is viewed as favorable, common stocks will be heavily emphasized. Under
normal circumstances, at least 65% of each Portfolio's total assets will be
invested in common stocks or securities convertible into common stocks.
Under normal conditions, no less than 80% of the total assets of the
International Growth and High-Yield Bond Portfolios will be invested in equity
or debt securities identified in the respective Portfolio policies listed above.
In the event that future economic or financial conditions adversely affect
equity securities, or stocks are considered overvalued, each of the Equity,
Small Cap, and International Growth Portfolios may temporarily invest a
substantial portion of its assets in debt securities, with an emphasis on money
market instruments or
11
<PAGE> 190
cash and cash equivalents until the Portfolio Manager determines, that market
conditions warrant returning to investments in equity securities. Please refer
to the discussion on Defensive Tactics at page 16.
Each Portfolio will in the normal course have varying amounts of cash
assets which have not yet been invested in accordance with its objectives. This
cash will be temporarily invested in high quality short term money market
securities and cash equivalents.
MANAGEMENT OF ASSETS
The Portfolio Managers intend to manage each Portfolio's assets by buying
and selling securities to help attain its investment objective. This may result
in increases or decreases in a Portfolio's current income available for
distribution to its shareholders. While none of the Portfolios is managed with
the intent of generating short-term capital gains, each of the Portfolios may
dispose of investments (including money market instruments) regardless of the
holding period if, in the opinion of the Portfolio Manager, an issuer's
creditworthiness or perceived changes in a company's growth prospects or asset
value make selling them advisable. Such an investment decision may result in
capital gains or losses and could result in a high portfolio turnover rate
during a given period, resulting in increased transaction costs related to
equity securities. Disposing of debt securities in these circumstances should
not increase direct transaction costs since debt securities are normally traded
on a principal basis without brokerage commissions. However, such transactions
do involve a mark-up or mark-down of the price.
During periods of unusual market conditions when the Portfolio Manager
believes that investing for defensive purposes is appropriate, or in order to
meet anticipated redemption requests, part or all of the assets of one or more
of the Portfolios may be invested in cash or cash equivalents including
obligations listed below.
The portfolio turnover rates of the Portfolios cannot be accurately
predicted. Nevertheless, it is anticipated that the International Growth
Portfolio will have an annual turnover rate (excluding turnover of securities
having a maturity of one year or less) of 100% or less. A 100% annual turnover
rate would occur, for example, if all the securities in a Portfolio's investment
portfolio were replaced once in a period of one year.
INVESTMENT TECHNIQUES AND ASSOCIATED RISKS
The investment techniques or instruments described below are used for the
Portfolios' investment programs:
Short-Term Investments. Each Portfolio typically invests a part of its
assets in various types of U.S. Government securities and high-quality,
short-term debt securities with remaining maturities of one year or less ("money
market instruments"). This type of short-term investment is made to provide
liquidity for the purchase of new investments and to effect redemptions of
shares. The money market instruments in which each Portfolio may invest include
government obligations, certificates of deposit, bankers' acceptances,
commercial paper, short-term corporate securities and repurchase agreements. The
International Growth Portfolio may invest in all of the above, both foreign and
domestic, including foreign currency, foreign time deposits, and foreign bank
acceptances.
Repurchase Agreements. Each Portfolio may acquire securities subject to
repurchase agreements. Under a typical repurchase agreement, a Portfolio would
acquire a debt security for a relatively short period (usually for one day and
not for more than one week) subject to an obligation of the seller to repurchase
and of the Portfolio to resell the debt security at an agreed-upon higher price,
thereby establishing a fixed investment return during the Portfolio's holding
period. A Portfolio will enter into repurchase agreements with member banks of
the Federal Reserve System having total assets in excess of $500 million and
with dealers registered with the Securities and Exchange Commission. Under each
repurchase agreement the selling institution will be required to maintain as
collateral securities whose market value is at least equal to the repurchase
price. Repurchase agreements could involve certain risks in the event of default
or insolvency of the selling institution, including costs of disposing of
securities held as collateral and any loss resulting from delays or restrictions
upon the Portfolio's ability to dispose of securities. Pursuant to guidelines
established by the Fund's Board of Trustees, the Portfolio Manager considers the
creditworthiness of those banks and non-
12
<PAGE> 191
bank dealers with which a Portfolio enters into repurchase agreements and
monitors on an ongoing basis the value of securities held as collateral to
ensure that such value is maintained at the required level. A Portfolio will not
enter into a repurchase agreement with a dealer if the agreement has a maturity
beyond seven days.
Loans of Portfolio Securities. Each Portfolio may lend its portfolio
securities if such loans are secured continuously by collateral (cash, U.S.
Government or agency obligations or letters of credit) maintained on a daily
basis in an amount at least equal at all times to the market value of the
securities loaned and if the Portfolio does not incur any fees (other than the
transaction fees of its custodian bank) in connection with such loans. A
Portfolio may call the loan at any time on five days' notice and reacquire the
loaned securities. During the loan period, the Portfolio would continue to
receive the equivalent of the interest paid by the issuer on the securities
loaned and would also have the right to receive the interest on investment of
the cash collateral in short-term debt instruments. A portion of either or both
kinds of such interest may be paid to the borrower of such securities. It is not
intended that the value of the securities loaned, if any, would exceed 10% of
the value of a Portfolio's total assets. Securities loans must also meet
applicable tests under the Internal Revenue Code of 1986, as amended (the
"Code"). A Portfolio could experience various costs or losses if a borrower
defaults on its obligation to return the borrowed securities.
Options and Futures. To the extent permitted by Arizona and New York law,
each of the Equity, Small Cap and International Growth Portfolios intend to
engage in futures contracts or options on futures contracts for bona fide
hedging or other purposes, and to write calls and puts on individual securities.
When either the Equity, Small Cap or International Growth Portfolio anticipates
a significant market or market sector advance, the purchase of a futures
contract affords a hedge against not participating in the advance at a time when
such Portfolio is not fully invested ("anticipatory hedge"). Such a purchase of
a futures contract would serve as a temporary substitute for the purchase of
individual securities, which then may be purchased in an orderly fashion once
the market has stabilized. As individual securities are purchased, an equivalent
amount of futures contracts could be terminated by offsetting sales. Any such
Portfolio may sell futures contracts in anticipation of or in a general market
or market sector decline that may adversely affect the market value of such
Portfolio's securities ("defensive hedge"). To the extent that the Equity, Small
Cap or International Growth Portfolio of securities changes in value in
correlation with the underlying security or index, the sale of futures contracts
would substantially reduce the risk to the Portfolios of a market decline and by
so doing, provide an alternative to the liquidation of securities positions in
the Portfolios with attendant transaction costs. So long as the Commodity
Futures Trading Commission rules so require, none of the Equity, Small Cap or
International Growth Portfolios will enter into any financial futures or options
contract unless such transactions are for bona-fide hedging purposes, or for
other purposes only if the aggregate initial margins and premiums required to
establish such non-hedging positions would not exceed 5% of the liquidation
value of such Portfolio's assets. When writing put options, a Portfolio will
maintain in a segregated account at its Custodian liquid assets with a value
equal to at least the exercise price of the option to secure its obligation to
pay for the underlying security. As a result, such Portfolio forgoes the
opportunity of trading the segregated assets or writing calls against those
assets. There may not be a complete correlation between the price of options and
futures and the market prices of the underlying securities. The Portfolio may
lose the ability to profit from an increase in the market value of the
underlying security or may lose its premium payment. If due to a lack of a
market a Portfolio could not effect a closing purchase transaction with respect
to an over-the-counter ("OTC") option, it would have to hold the callable
securities until the call lapsed or was exercised.
The Managed Portfolio is authorized to, but does not presently intend to,
purchase, sell and write options and purchase and sell futures contracts for
hedging and other purposes. In the event that the Portfolio Manager intends in
the future to engage in such transactions, appropriate disclosures will be made
to existing and prospective shareholders.
Except as otherwise indicated, the Portfolio Managers may engage in the
following hedging transactions to seek to hedge all or a portion of a
Portfolio's assets against market value changes resulting from changes in equity
values, interest rates and currency fluctuations utilizing covered options,
futures and forwards. Hedging is a means of offsetting, or neutralizing, the
price movement of an investment by making another investment, the price of which
should tend to move in the opposite direction from the original investment.
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CALL OPTIONS
The Portfolios may write (sell) call options that are listed on national
securities exchanges or are available in the over-the-counter market through
primary broker-dealers. Call options are short-term contracts with a duration of
nine months or less. Such Portfolios of the Fund may only write call options
which are "covered," meaning that the Portfolio either owns the underlying
security or has an absolute and immediate right to acquire that security,
without additional cash consideration, upon conversion or exchange of other
securities currently held in the Portfolio. In addition, no Portfolio will,
prior to the expiration of a call option, permit the call to become uncovered.
If a Portfolio writes a call option, the purchaser of the option has the right
to buy (and the Portfolio has the option to sell) the underlying security
against payment of the exercise price throughout the term of the option. The
Portfolio's obligation to deliver the underlying security against payment of the
exercise price would terminate either upon expiration of the option or earlier
if the Portfolio were to effect a "closing purchase transaction" through the
purchase of an equivalent option on an exchange. The Portfolio would not be able
to effect a closing purchase transaction after it had received notice of
exercise. The International Growth Portfolio may purchase and write covered call
options on foreign and U.S. securities and indices and enter into related
closing transactions.
Generally, such a Portfolio intends to write listed covered calls when it
anticipates that the rate of return from doing so is attractive, taking into
consideration the premium income to be received, the risks of a decline in
securities prices during the term of the option, the probability that closing
purchase transactions will be available if a sale of the securities is desired
prior to the exercise, or expiration of the options, and the cost of entering
into such transactions. A principal reason for writing calls on a securities
portfolio is to attempt to realize, through the receipt of premium income, a
greater return than would be earned on the securities alone. A covered call
writer such as a Portfolio, which owns the underlying security has, in return
for the premium, given the opportunity for profit from a price increase in the
underlying security above the exercise price, but it has retained the risk of
loss should the price of the security decline.
The writing of covered call options involves certain risks. A principal
risk arises because exchange and over-the-counter markets for options are a
relatively new and untested concept; it is impossible to predict the amount of
trading interest which may exist in such options, and there can be no assurance
that viable exchange and over-the-counter markets will develop or continue. The
Portfolios will write covered call options only if there appears to be a liquid
secondary market for such options. If, however, an option is written and a
liquid secondary market does not exist, it may be impossible to effect a closing
purchase transaction in the option. In that event, the Portfolio may not be able
to sell the underlying security until the option expires or the option is
exercised, even though it may be advantageous to sell the underlying security
before that time.
The Portfolios will only engage in hedging transactions against changes
resulting from market conditions in the values of securities owned or expected
to be owned by the Portfolios. Unless otherwise indicated, a Portfolio will not
enter into a hedging transaction (except for closing transactions) if,
immediately thereafter, the sum of the amount of the initial deposits and
premiums on open contracts and options would exceed 20% of the Portfolio's total
assets taken at current value.
PORTFOLIO TRANSACTIONS
The Portfolio Managers' primary consideration when executing security
transactions with broker-dealers is to obtain, and maintain the availability of,
execution at the most favorable prices and in the most effective manner
possible. A Portfolio Manager may select, under certain conditions, Oppenheimer
& Co., Inc., an affiliate of the OpCap Advisors, Inc., the Portfolio Manager of
the Equity, Small Cap and Managed Portfolios, to execute each Portfolio's
transactions. When selecting broker-dealers, other than Oppenheimer & Co., Inc.,
to execute a Portfolio's transactions, the Portfolio Managers may consider their
record of sales of shares of other investment company clients of the Portfolio
Managers. Selection of broker-dealers to execute portfolio transactions must be
done in a manner consistent with the foregoing primary consideration, the "Rules
of Fair Practice" of the National Association of Securities Dealers, Inc. and
such other policies as the Board of Trustees may determine. (For a further
discussion of portfolio trading, see the Statement of Additional Information,
"Investment Management and Other Services.")
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GENERAL RISKS ASSOCIATED WITH EQUITY (EQUITY, SMALL CAP, INTERNATIONAL GROWTH
AND MANAGED) PORTFOLIOS
The Equity Portfolios seek to reduce risk of loss of principal due to
changes in the value of individual stocks by investing in a diversified
portfolio of common stocks and through the use of options on stocks. Such
investment techniques do not, however, eliminate all risks. Investors should
expect the value of the Equity Portfolios and the net asset value of their
shares to fluctuate based on market conditions.
RISK ASPECTS OF THE INDIVIDUAL PORTFOLIOS
Small Cap Portfolio. The Small Cap Portfolio is expected to have greater
risk exposure and reward potential than a fund which invests primarily in
larger-capitalization companies. The trading volumes of securities of
smaller-capitalization companies are normally less than those of
larger-capitalization companies. This often translates into greater price
swings, both upward and downward. Since trading volumes are lower, new demand
for the securities of such companies could result in disproportionately large
increases in the price of such securities. The waiting period for the
achievement of an investor's objectives might be longer since these securities
are not closely monitored by research analysts and, thus, it takes more time for
investors to become aware of fundamental changes or other factors which have
motivated the Portfolio's purchase. Smaller-capitalization companies often
achieve higher growth rates and experience higher failure rates than do
larger-capitalization companies.
It is the present intention of the Equity, Small Cap, International Growth
and Managed Portfolio Managers with respect to each of the respective Portfolios
to invest no more than 5 percent of its net assets in bonds rated below Baa3 by
Moody's or BBB by S&P (commonly known as "junk bonds"). In the event that the
Portfolio Managers intend in the future to invest more than 5% of the net assets
of any such Portfolio in junk bonds, appropriate disclosures will be made to
existing and prospective shareholders. For information about the possible risks
of investing in junk bonds see "High-Yield Securities" below and "Investment of
the Assets" in the Statement of Additional Information.
International Growth Portfolio. The International Growth Portfolio carries
additional risks associated with possibly less stable foreign securities and
currencies. Refer to "Foreign Currency and Values" and "Foreign Securities"
sections of the Statement of Additional Information.
Managed Portfolio. An investment in the Managed Portfolio will entail both
market and financial risk, the extent of which depends on the amount of the
Portfolio's assets which are committed to equity, longer term debt or money
market securities at any particular time. The Managed Portfolio may invest in
mortgage-backed securities. Such securities, while similar to other fixed-income
securities, involve additional risk because mortgage prepayments are passed
through to the holder of the mortgage-backed security and must be reinvested.
When interest rates fall, prepayments tend to rise. The Portfolio may have to
reinvest that portion of its assets invested in such securities more frequently
when interest rates are low than when interest rates are high.
Although the Managed Portfolio seeks to reduce credit risks, i.e., failure
of obligors to pay interest and principal, through careful selection of
investments, and it seeks to reduce market risks resulting from fluctuations in
the principal value of debt obligations due to changes in prevailing interest
rates by careful timing of maturities of investments, such risks cannot be
eliminated, and these factors will affect the net asset value of shares in the
Managed Portfolio. The value of debt obligations has an inverse relationship
with prevailing interest rates. The risks of investing in fixed income
securities are greater when such securities are high-yield securities.
HIGH-YIELD SECURITIES
Notwithstanding the investment policies and restrictions applicable to the
High-Yield Bond Portfolio which are designed to reduce risks associated with
such investments, high-yield securities may carry higher levels of risk than
many other types of income producing securities. These risks are of three basic
types: the risk that the issuer of the high-yield bond will default in the
payment of principal and interest; the risk that the value of the bond will
decline due to rising interest rates, economic conditions, or public perception;
and the
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risk that the investor in such bonds may not be able to readily sell such bonds.
Each of the major categories of risk are impacted by various factors, as
discussed below:
High-Yield Bond Market
The high-yield bond market is relatively new and has grown in the context
of a long economic expansion. Any downturn in the economy may have a negative
impact on the perceived ability of the issuer to make principal and interest
payments which may adversely affect the value of outstanding high-yield
securities and reduce market liquidity.
Sensitivity to Interest Rate and Economic Changes
In general, the market prices of bonds bear an inverse relationship to
interest rates; as interest rates increase, the prices of bonds decrease. The
same relationship may hold for high-yield bonds, but in the past high-yield
bonds have been somewhat less sensitive to interest rate changes than treasury
and investment grade bonds. While the price of high-yield bonds may not decline
as much, relatively, as the prices of treasury or investment grade bonds decline
in an environment of rising interest rates, the market price, or value, of a
high-yield bond will be expected to decrease in periods of increasing interest
rates, negatively impacting the net asset value of the High-Yield Bond
Portfolio. High-yield bond prices may not increase as much, relatively, as the
prices of treasury or investment grade bonds in periods of decreasing interest
rates. Payments of principal and interest on bonds are dependent upon the
issuer's ability to pay. Because of the generally lower creditworthiness of
issuers of high-yield bonds, changes in the economic environment generally, or
in an issuer's particular industry or business, may severely impact the ability
of the issuer to make principal and interest payments and may depress the price
of high-yield securities more significantly than such changes would impact
higher rated, investment grade securities.
Payment Expectations
Many high-yield bonds contain redemption or call provisions which might be
expected to be exercised in periods of decreasing interest rates. Should bonds
in which the High-Yield Bond Portfolio has invested be redeemed or called during
such an interest rate environment, the Portfolio would have to sell such
securities without reference to their investment merit and reinvest the proceeds
received in lower-yielding securities, resulting in a decreased return for
investors in the High-Yield Bond Portfolio. In addition, such redemptions or
calls may reduce the High-Yield Bond Portfolio's asset base over which the
Portfolio's investment expenses may be spread.
Liquidity and Valuation
Because of periods of relative illiquidity, many high-yield bonds may be
thinly traded. As a result, the Board of Directors' ability to accurately value
high-yield bonds and determine the net asset value of the High-Yield Bond
Portfolio, as well as the Portfolio's ability to sell such securities, may be
limited. Public perception of and adverse publicity concerning high-yield
securities may have a significant negative impact on the value and liquidity of
high-yield securities, even though not based on fundamental investment analysis.
DEFENSIVE TACTICS
Any or all of the Portfolios may at times for defensive purposes, at the
determination of the Portfolio Manager, temporarily place all or a portion of
their assets in cash, short-term commercial paper (i.e. short-term unsecured
promissory notes issued by corporations to finance short-term credit needs),
United States Government Securities, high-quality debt securities (including
"Eurodollar" and "Yankee Dollar" obligations, i.e., U.S. issuer borrowings
payable overseas in U.S. funds and obligations of foreign issuers payable in
U.S. funds), non-convertible preferred stocks and obligations of banks when in
the judgment of the Portfolio Manager such investments are appropriate in light
of economic or market conditions. The International Growth Portfolio may invest
in all of the above, both foreign and domestic, including foreign currency,
foreign
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time deposits, and foreign bank acceptances. When a Portfolio takes a defensive
position, it may not be following the fundamental investment policy of the
Portfolio.
Tax Considerations
To the extent that the High-Yield Bond Portfolio invests in securities
structured as zero coupon bonds, the Portfolio will be required to report
interest income even though no cash interest payment is received until maturity
of the bond. Investors in the High-Yield Bond Portfolio would be taxed on this
interest income even though no cash distribution of such interest is received in
the year in which such income is taxed.
INVESTMENT RESTRICTIONS
Each Portfolio is subject to certain investment restrictions which,
together with its investment objective, are fundamental policies changeable only
by shareholder vote. Under some of those restrictions, each Portfolio may not:
1. Invest more than 5% of the value of its total assets in the securities
of any one issuer, or purchase more than 10% of the voting securities, or more
than 10% of any class of security, of any issuer (for this purpose all
outstanding debt securities of an issuer are considered as one class and all
preferred stock of an issuer are considered as one class).
2. Concentrate its investments in any particular industry, but if deemed
appropriate for attaining its investment objective, a Portfolio may invest up to
25% of its total assets (valued at the time of investment) in any one industry
classification used by that Portfolio for investment purposes.
3. Invest more than 5% of the value of its total assets in securities of
issuers having a record, together with predecessors, of less than three years of
continuous operation.
4. Make loans, except through the purchase of U.S. Government securities
and corporate debt obligations, repurchase agreements or lending portfolio
securities as described above under "Loans of Portfolio Securities."
5. Borrow money in excess of 10% of the value of its total assets. It may
borrow only as a temporary measure for extraordinary or emergency purposes and
will make no additional investments while such borrowings exceed 5% of the total
assets. Such prohibition against borrowing does not prohibit escrow or other
collateral or margin arrangements in connection with the hedging instruments
which a Portfolio is permitted to use by any of its other fundamental policies.
6. Invest more than 10% of its net assets in illiquid securities
(securities for which market quotations are not readily available) and
repurchase agreements which have a maturity of longer than seven days. Other
investment restrictions are described in the Statement of Additional
Information.
All percentage limitations apply immediately after a purchase or initial
investment and any subsequent change in any applicable percentage resulting from
market fluctuations or other changes in the amount of total assets does not
require elimination of any security from a Portfolio.
MANAGEMENT OF THE FUND
The Fund's Board of Trustees has overall responsibility for the management
of the Fund under the laws of Massachusetts governing the responsibilities of
trustees of a Massachusetts business trust. In general, such responsibilities
are comparable to those of directors of a Massachusetts business corporation.
The Board of Trustees of the Fund has undertaken to monitor the Fund for the
existence of any material irreconcilable conflict between the interests of
variable annuity Contractholders and variable life insurance Contractholders and
shall report any such conflict to the boards of MONY and MONY America. The
Boards of Directors of those companies have agreed to be responsible for
reporting any potential or existing conflicts to the Trustees of the Fund and,
at their own cost, to remedy such conflict up to and including establishing a
new registered management investment company and segregating the assets
underlying the variable annuity contracts and the
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variable life insurance contracts. The Statement of Additional Information
contains information about the Trustees and Officers of the Fund.
INVESTMENT ADVISER AGREEMENT
Enterprise Capital provides administrative services to the Portfolios,
subject to the direction of the Board and in keeping with the stated investment
objectives of each Portfolio. Enterprise Capital and the Fund have entered into
Portfolio Manager Agreements with each of the Portfolio Managers discussed
below.
Enterprise Capital is assisted in this duty by Evaluation Associates, Inc.,
which has had 24 years of experience in evaluating investment advisers for
individuals and institutional investors. The oversight and management services
provided by Enterprise Capital include (i) supervising the Portfolio Managers'
compliance with state and federal regulations, including the Investment Company
Act, (ii) evaluating the Portfolio Managers' performance, (iii) analyzing the
composition of the investment portfolios of each Portfolio of the Fund and
preparing reports thereon for the Board or any committee of the board, (iv)
evaluating each Portfolio's performance in comparison to similar mutual funds
and other market information, (v) conducting searches, upon a request of the
Board, for a replacement for any Portfolio Manager then serving the Fund, and
(vi) preparing presentations to shareholders which analyze the Fund's overall
investment program and performance.
Enterprise Capital is a subsidiary of MONY, one of the nation's largest
insurance companies. Enterprise Capital serves as the investment adviser to The
Enterprise Group of Funds, Inc., a registered investment company consisting of
ten separate investment portfolios with assets of $737 million at March 31,
1996. Total assets under management at March 31, 1996 are approximately $2.62
billion. Enterprise Capital's address is Atlanta Financial Center, 3343
Peachtree Road, Ste. 450, Atlanta, Georgia 30326-1022. MONY's address is 1740
Broadway, New York, New York 10019.
PORTFOLIO MANAGERS
Equity Portfolio
The Portfolio Manager of the Equity Portfolio is OpCap Advisors which is a
subsidiary of Oppenheimer Capital, a general partnership. The Portfolio Manager
and its affiliates have operated as investment advisers to both mutual funds and
other clients since 1968, and had approximately $40 billion under management as
of March 31, 1996. Eileen Rominger, Senior Vice President of Oppenheimer
Capital, is responsible for the day-to-day management of the Portfolio. Ms.
Rominger has more than 17 years experience in the investment industry. The
annual Management Fee is .80% of average daily net assets up to $400 million;
.75% of average daily net assets from $400 million to $800 million; and .70% of
average daily net assets in excess of $800 million, and the Portfolio Manager
receives .40% of average daily net assets up to $1,000,000,000 and .30%
thereafter. Usual investment minimum is $10 million. Representative clients
include Pacific Telesis Group, Caterpillar, Inc. and NY State Electric & Gas
OpCap's address is One World Financial Center, New York, New York 10281.
Small Cap Portfolio
The Portfolio Manager of the Small Cap Portfolio is GAMCO Investors, Inc.
("GAMCO"). Its offices are located at One Corporate Center, Rye, New York 10580.
GAMCO is a majority owned subsidiary of Gabelli Funds, Inc. GAMCO's predecessor,
Gabelli & Company, Inc., was founded in 1977 by Mario J. Gabelli, who served as
its chief investment officer since inception. Mr. Gabelli is responsible for the
day-to-day management of the Portfolio. He has more than 30 years experience in
the investment industry. Representative clients include: AT&T; Halliburton Co.
and ITT Corp. As of March 31, 1996, total assets under management for all
clients were $5.1 billion. Usual investment minimum is $1 million. The annual
Management Fee is .80% of average daily net assets up to $400 million; .75% of
average daily net assets from $400 million to $800 million; and .70% of average
daily net assets in excess of $800 million; and the Portfolio Manager receives
.40% of average daily net assets up to $1,000,000,000 and .30% thereafter.
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International Growth Portfolio
The Portfolio Manager of the International Growth Portfolio is Brinson
Partners, Inc. which is a wholly owned subsidiary of Brinson Holdings, Inc. and
is an acquisition of Swiss Bank Corporation presently pending. Investments of
the International Growth Portfolio are managed by a committee of the Portfolio
Manager. As of December 31, 1995, Brinson Partners Inc.'s assets under
management for all clients approximated $53 billion. Usual investment minimum:
$25 million. Representative clients not disclosed due to confidentiality
agreements. Brinson's address is 209 South LaSalle Street, Chicago, Illinois
60604. The annual Management Fee is .85% of average daily net assets, and the
Portfolio Manager receives 53% of that fee for assets under management up to
$100 million; 41% of that fee for assets under management from $100 million to
$200 million; 38% of that fee for assets from $200 million to $500 million; and
29% of that fee for assets greater than $500 million.
Managed Portfolio
The Portfolio Manager of the Managed Portfolio is OpCap Advisors, described
in the paragraph referencing the Equity Portfolio. Richard J. Glasebrook II,
Managing Director of Oppenheimer Capital, is responsible for the day-to-day
management of the Portfolio. He has more than 22 years of investment industry
experience. The annual Management Fee is .80% of average daily net assets up to
$400 million; .75% of average daily net assets from $400 million to $800
million; and .70% of average daily net assets in excess of $800 million, and the
Portfolio Manager receives .40% of average daily net assets up to $1,000,000,000
and .30% thereafter.
High-Yield Bond Portfolio
The Portfolio Manager of the High-Yield Bond Portfolio is Caywood-Scholl
Capital Management ("Caywood-Scholl"). This firm was formed in April 1986 and is
owned by its employees. Mr. Caywood, Managing Director and Chief Executive
Officer, is responsible for the day-to-day management of the Portfolio. He has
more than 27 years investment industry experience. Caywood-Scholl provides
investment advice exclusively with respect to high-yield, low grade fixed income
instruments. As of March 31, 1994, assets under management for all clients
approximated $643 million. Usual investment minimum: $1 million. Representative
clients include: Hospital Corporation of America; Colonial Penn Insurance; and
Golden Rule Insurance. The address of Caywood-Scholl Capital Management is 4350
Executive Drive, Suite 125, San Diego, California 92121. The annual Management
Fee is .60% of average daily net assets, and the Portfolio Manager receives 50%
of that fee for assets up to $100,000,000 and 42% of that fee for assets above
$100,000,000.
General Portfolio Information
Under the Investment Adviser Agreement, each Portfolio is responsible for
bearing organizational expenses, taxes and governmental fees; brokerage
commissions, interest and other expenses incurred in acquiring and disposing of
portfolio securities; Trustees' fees, out of pocket travel expenses and other
expenses for trustees who are not interested persons; legal, fund accounting and
audit expenses; custodian, dividend disbursing and transfer agent fees; and
other expenses not expressly assumed by Enterprise Capital under the Investment
Adviser Agreement.
The Statement of Additional Information contains more information about the
Investment Adviser Agreement, including a more complete description of the
management fee and expense arrangements, exculpation provisions and portfolio
transactions for the Fund.
DETERMINATION OF NET ASSET VALUE
The net asset value per share is calculated separately for each Portfolio.
The net asset value of each Portfolio is determined at the close of the regular
trading session ("Close") of the New York Stock Exchange ("NYSE") (currently
4:00 p.m. Eastern Time) each day the NYSE is open and on each other day on which
there is a sufficient degree of trading in any Portfolio's portfolio securities
affecting materially the value of
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such securities (if the Fund receives a request to redeem its shares that day),
by dividing the value of the Portfolio's net assets by the number of shares
outstanding. The Fund's Board of Trustees has established procedures to value
the Portfolios' securities to determine net asset value; in general, those
valuations are based on market value, with special provisions for (i) securities
(including restricted securities) not having readily available market quotations
and (ii) short-term debt securities. Further details are in the Statement of
Additional Information.
PURCHASE OF SHARES
Investments in the Fund may be made by the Variable Accounts. Persons
desiring to purchase Contracts funded by any Portfolio or Portfolios of the Fund
should read this Prospectus in conjunction with the Prospectus of the
Contract(s).
Shares of each Portfolio of the Fund are offered to the Variable Accounts
without sales charge at the respective net asset values of the Portfolios next
determined after receipt by the Fund of the purchase payment in the manner set
forth above under "Determination of Net Asset Value." Certificates representing
shares of the Fund will not be physically issued. Enterprise Fund Distributors,
Inc. acts without remuneration from the Fund as the exclusive Distributor of the
Fund's shares. The principal executive office of the Distributor is located at
Atlanta Financial Center, 3343 Peachtree Road, N.E., Suite 450, Atlanta, Georgia
30326-1022.
REDEMPTION OF SHARES
Shares of any Portfolio of the Fund can be redeemed by the Variable
Accounts at any time for cash, at the net asset value next determined after
receipt of the redemption request in proper form. The market value of the
securities in each of the Portfolios is subject to daily fluctuation and the net
asset value of each Portfolio's shares will fluctuate accordingly. The
redemption value of the Fund's shares may be either more or less than the
original cost to the Variable Account. Payment for redeemed shares is ordinarily
made within seven days after receipt by the Fund's transfer agent of redemption
instructions in proper form. The redemption privilege may be suspended and
payment postponed during any period when: (1) the New York Stock Exchange is
closed other than for customary weekend or holiday closings or trading thereon
is restricted as determined by the Securities and Exchange Commission; (2) an
emergency, as defined by the Securities and Exchange Commission exists making
trading of portfolio securities or valuation of net assets not reasonably
practicable; (3) the Securities and Exchange Commission has by order permitted
such suspension.
STATE LAW RESTRICTIONS
The investments of the MONY America Variable Accounts are subject to the
provisions of the New York and Arizona insurance law, respectively, applicable
to the investments of life insurance company separate accounts. Although these
state law investment restrictions do not apply directly to the Fund, the
Portfolios will comply, without the approval of shareholders, with such
statutory requirements, as they exist or may be amended.
Under pertinent provisions of New York law, as they currently exist, the
assets of the Variable Accounts of MONY may be invested in any investments (1)
permitted by agreement between these Variable Accounts and their Contractholders
and (2) acquired in good faith and with that degree of care in acquiring
investments that an ordinarily prudent person in a like position would use under
similar circumstances. The only agreement with Contractholders pertaining to
investments permitted for the Variable Accounts is as described in the
prospectuses for the Contracts, namely that the Variable Accounts will invest
only in shares of the Fund. The investment of the assets of the Fund are subject
to the investment objectives, policies and restrictions applicable to the
Portfolios, as described in this prospectus (see "Investment Objectives And
Policies" at page 9 and "Investment Restrictions" at page 17 and Statement of
Additional Information, "Investment Restrictions").
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The pertinent provisions of Arizona law, as they currently exist, are in
summary form as follows:
The assets of Variable Accounts established by MONY America may be
invested in any investments that are of the kind permitted and that satisfy
the quantitative requirements, but without regard to quantitative
restrictions. Bonds, debentures, notes, commercial paper and other
evidences of indebtedness, and preferred, guaranteed or preference stock
must have received an investment grade rating approved by the Director of
Insurance. Funds may not be invested in foreign banks (other than foreign
branches of domestic banks) except that investments may be made in
obligations issued, assumed or guaranteed by the International Bank for
Reconstruction and Development. Investments not otherwise permitted under
Arizona law may be made in an amount not exceeding in the aggregate 10
percent of assets and not exceeding 2 percent of assets as to any one such
investment.
Although compliance with New York and Arizona laws described above will
ordinarily result in compliance with any applicable laws of other states, under
some circumstances the laws of other states could impose additional
restrictions. Accordingly, if any state or other jurisdiction in which the
Variable Accounts propose to do business imposes limits applicable to the
Variable Accounts, in addition to any imposed by New York and Arizona law, the
Fund will comply with such further investment limits.
DIVIDENDS, DISTRIBUTIONS AND TAXES
Each Portfolio intends to distribute substantially all of its net
investment income and any net realized capital gains. Dividends from net
investment income and any distributions of realized capital gains will be paid
in additional shares of the Portfolio paying the dividend or making the
distribution and credited to the shareholder's account unless the shareholder
elects to receive such dividends or distributions in cash.
Equity, Small Cap, International Growth and Managed Portfolios. Dividends
from net investment income, if any, on the Small Cap, Equity, International
Growth and Managed Portfolios will be declared and paid at least annually, and
any net realized capital gains will be declared and paid at least once per
calendar year.
High-Yield Bond Portfolio. Dividends from investment income are declared
and paid quarterly. Distributions of realized net short-term capital gains, if
any, and realized long-term capital gains will be declared and paid at least
once per calendar year.
Taxes. Because the Fund intends to distribute all of the net investment
income and capital gains of each Portfolio and otherwise qualify each Portfolio
as a regulated investment company under Subchapter M of the Internal Revenue
Code, it is not expected that any Portfolio of the Fund will be required to pay
any federal income tax on such income and capital gains. Since the Variable
Accounts are the shareholders of the Fund, no discussion is presented herein as
to the federal income tax consequences at the shareholder level. For information
concerning the federal income tax consequences to Contractholders, see the
accompanying Prospectus for the Contracts.
CALCULATION OF PERFORMANCE
From time to time the performance of one or more of the Portfolios may be
advertised. The performance data contained in these advertisements is based upon
historical earnings and is not indicative of future performance. The data for
each Portfolio reflects the results of that Portfolio of the Fund and recurring
charges and deductions borne by or imposed on the Portfolio. As the performance
for any Portfolio does not include charges and deductions under the Contracts,
comparisons with other portfolios used in connection with different variable
accounts may not be useful. Set forth below for each Portfolio is the manner in
which the data contained in such advertisements will be calculated.
The performance data for these Portfolios will reflect the "yield" and
"total return". The "yield" of each of these Portfolios refers to the income
generated by an investment in that Portfolio over the 30-day period stated in
the advertisement and is the result of dividing that income by the value of the
Portfolio. The value of each Portfolio is the average daily number of shares
outstanding multiplied by the net asset value per share on
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the last day of the period. "Total Return", for each of these Portfolios refers
to the value a Shareholder would receive on the date indicated if a $1,000
investment had been made the indicated number of years ago. It reflects
historical investment results less charges and deductions of the Fund.
In addition, reference in advertisements may be made to various indices,
including, without limitation, the Standard & Poor's 500 Stock Index, the
Russell 2000 and the Lehman Brothers Corporate/Government Index, and various
rankings by independent evaluators such as Morningstar and Lipper Analytical
Services, Inc. in order to provide the reader a basis for comparison.
ADDITIONAL INFORMATION
Organization of the Fund. The Fund, under the name of Quest for Value
Accumulation Trust, was organized as a Massachusetts business trust on March 2,
1988, and is registered with the Securities and Exchange Commission as an
open-end diversified management investment company. The Fund changed its name to
the Enterprise Accumulation Trust on September 16, 1994. When issued, shares are
fully paid and have no preemptive or conversion rights. The shares of beneficial
interest of the Fund, $0.01 par value, are divided into five separate series.
The shares of each series are freely transferable and equal as to earnings,
assets and voting privileges with all other shares of that series. There are no
conversion, preemptive or other subscription rights. Upon liquidation of the
Fund or any Portfolio, shareholders of a Portfolio are entitled to share pro
rata in the net assets of that Portfolio available for distribution to
shareholders after all debts and expenses have been paid. The shares do not have
cumulative voting rights.
The Fund's Board of Trustees, whose responsibilities are comparable to
those of directors of a Massachusetts corporation, is empowered to issue
additional classes of shares, which classes may either be identical except as to
dividends or may have separate assets and liabilities. Classes having separate
assets and liabilities are referred to as "series". The creation of additional
series and offering of their shares (the proceeds of which would be invested in
separate, independently managed portfolios with distinct investment objectives,
policies and restrictions) would not affect the interests of the current
shareholders in the existing Portfolios.
The assets received by the Fund on the sale of shares of each Portfolio and
all income, earnings, profits and proceeds thereof, subject only to the rights
of creditors, are allocated to each Portfolio, and constitute the assets of such
Portfolio. The assets of each Portfolio are required to be segregated on the
Fund's books of account. The Fund's Board of Trustees has agreed to monitor the
portfolio transactions and management of each of the Portfolios and to consider
and resolve any conflict that may arise. Direct expenses will be allocated to
each Portfolio and general expenses of the Fund will be prorated by total net
assets.
Voting. For matters affecting only one Portfolio, only the shareholders of
that Portfolio are entitled to vote. For matters relating to all the Portfolios
but affecting the Portfolios differently, separate votes by the Portfolio are
required. Approval of an Investment Management or Portfolio Manager Agreements
and a change in fundamental policies would be regarded as matters requiring
separate voting by each Portfolio. To the extent required by law, the Variable
Accounts, which are the shareholders of the Fund, will vote the shares of the
Fund, or any Portfolio of the Fund, held in the Variable Accounts in accordance
with instructions from Contractholders, as described under the caption "Voting
Rights" in the accompanying Prospectus for the Contracts. Shares for which no
instructions are received from Contractholders, as well as shares which
Enterprise Capital or its parent, MONY, may own, will be voted in the same
proportion as shares for which instructions are received. The Fund does not
intend to hold annual meetings of shareholders. However, the Board of Trustees
will call special meetings of shareholders for action by shareholder vote as may
be requested in writing by holders of 10% or more of the outstanding shares of a
Portfolio or as may be required by applicable laws or the Declaration of Trust
pursuant to which the Fund has been organized.
Under Massachusetts law shareholders could, in certain circumstances, be
held personally liable as partners for Fund obligations. The Fund's Declaration
of Trust contains an express disclaimer of shareholder liability for acts or
obligations of the Fund and requires that notice of such disclaimer be given in
each instrument entered into or executed by the Fund. The Declaration of Trust
also provides for indemnification out of the Fund's property for any shareholder
held personally liable for any Fund obligation. Thus, the risk of
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loss to a shareholder from being held personally liable for obligations of the
Fund is limited to the unlikely circumstance in which the Fund itself would be
unable to meet its obligations.
Custodian and Transfer Agent. The custodian of the assets of the Fund is
State Street Bank and Trust Company, P.O. Box 8505, Boston, MA 02266-8505, which
also acts as transfer agent and shareholder servicing agent for the Fund.
Contractholder Inquiries. Inquiries concerning the purchase and sale of
shares of the Fund as well as inquiries concerning dividends and account
statements should be directed to MONY. Inquiries concerning management and
investment policies of the Fund should be directed to Enterprise Capital, 3343
Peachtree Road, Ste. 450, Atlanta, Georgia 30326; or telephone 1-800-432-4320.
Annual Report. The Fund's latest annual report, which includes the
Management's Discussion and Analysis, is available upon request and without
charge upon written request to MONY, Mail Drop 76-18, 500 Frank W. Burr Blvd.,
Teaneck, New Jersey 07666-6888.
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APPENDIX
DESCRIPTION OF COMMERCIAL PAPER AND CORPORATE BOND RATINGS
Commercial Paper Ratings
Moody's commercial paper ratings are opinions of the ability of issuers to
repay promissory obligations when due. Moody's employs the following three
designations, all judged to be investment grade, to indicate the relative
repayment capacity of rated issuers: Prime 1 -- Superior Ability for Repayment;
Prime 2 -- Strong Ability for Repayment; Prime 3 -- Acceptable Ability for
Repayment.
S & P's commercial paper rating is a current assessment of the likelihood
of timely payment. Ratings are graded into four categories, ranging from "A" for
the highest quality obligations to "D" for the lowest. Issues assigned the
highest rating, "A", are regarded as having the greatest capacity for timely
payment. Issues in this category are delineated with the numbers "1", "2", and
"3" to indicate the relative degree of safety. The designation "A-1" indicates
that the degree of safety regarding timely payment is either overwhelming or
very strong. The "A+" designation is applied to those issues rated "A-1" which
possess overwhelming safety characteristics. Capacity for timely payment on
issues with the designation "A-2" is strong. However, the relative degree of
safety is not as high as for issues designated "A-1."
Fitch's commercial paper ratings represent Fitch's assessment of the
issuer's ability to meet its obligations in a timely manner. The assessment
places emphasis on the existence of liquidity. Ratings range from "F-1+" which
represents exceptionally strong credit quality to "F-4" which represents weak
credit quality.
Duff's short-term ratings apply to all obligations with maturities of under
one year, including commercial paper, the uninsured portion of certificates of
deposit, unsecured bank loans, master notes, bankers' acceptances, irrevocable
letters of credit and current maturities of long-term debt. Emphasis is placed
on liquidity. Ratings range for Duff 1+ for the highest quality to Duff 5 for
the lowest, issuers in default. Issues rated Duff 1+ are regarded as having the
highest certainty of timely payment. Issues rated Duff 1 are regarded as having
very high certainty of timely payment.
Thomson's BankWatch, Inc. ("TBW") assigns only one Issuer Rating to each
company, based upon a qualitative and quantitative analysis of the consolidated
financials of an issuer and its subsidiaries. The rating incorporates TBW's
opinion of the vulnerability of the company to adverse developments which may
impact the marketability of its securities, as well as the issuer's ability to
repay principal and interest. Ratings range from "A" for highest quality to "E"
for the lowest, companies with very serious problems.
Bond Ratings
A bond rated "Aaa" by Moody's is judged to be the best quality. They carry
the smallest degree of investment risk. Interest payments are protected by a
large or by an exceptionally stable margin and principal is deemed secure. While
the various protective elements may change, such foreseeable changes are
unlikely to impair the fundamentally strong position of such issues. Bonds which
are rated "Aa" are judged to be of high quality by all standards. Together with
the "Aaa" group they comprise what are generally known as high grade bonds.
Margins of protection on "Aa" bonds may not be as large as on "Aaa" securities
or fluctuations of protective elements may be of greater magnitude or there may
be other elements present which make the long-term risks appear somewhat larger
than "Aaa" securities. Bonds which are rated "A" possess many favorable
investment attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and interest are considered
adequate but elements may be present which suggest a susceptibility to
impairment some time in the future. Bonds rated "Baa" are considered medium
grade obligations whose interest payments and principal security appear adequate
for the present but may lack certain protective elements or may be
characteristically unreliable over any great length of time. Moody's applies
numerical modifiers "1," "2" and "3" in each generic rating classification from
"Aa" through "B" in its corporate bond rating system. The modifier "1" indicates
that the security ranks in the higher end of its generic rating category; the
modifier "2" indicates a mid-range ranking; and the modifier "3" indicates that
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the issue ranks in the lower end of its generic rating category. Bonds rated
"Ba" are judged to have speculative elements and bonds rated below "Ba" are
speculative to a higher degree.
Debt rated "AAA" by S & P has the highest rating assigned by it. Capacity
to pay interest and repay principal is extremely strong. Debt rated "AA" has a
strong capacity to pay interest and repay principal and differs from "AAA"
issues only in small degree. Debt rated "A" has a strong capacity to pay
interest and repay principal although it is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than debt in
higher rated categories. Debt rated "BBB" is regarded as having an adequate
capacity to pay interest and repay principal. Whereas it normally exhibits
adequate protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay interest and
repay principal for debt in this category than in higher rated categories. Debt
rated "BB" and below is regarded as having predominantly speculative
characteristics with respect to capacity to pay interest and repay principal.
Debt rated "AAA", the highest rating by Fitch, is considered to be of the
highest credit quality. The obligor has an exceptionally strong ability to pay
interest and repay principal, which is unlikely to be affected by reasonably
foreseeable events. Debt rated "AA" is regarded as very high credit quality. The
obligor's ability to pay interest and repay principal is very strong. Debt rated
"A" is of high credit quality. The obligor's ability to pay interest and repay
principal is considered to be strong, but may be more vulnerable to adverse
changes in economic conditions and circumstances than debt with higher ratings.
Debt rated "BBB" is of satisfactory credit quality. The obligor's ability to pay
interest and repay principal is adequate; however, a change in economic
conditions may adversely affect timely payment. Plus (+) and minus (-) signs are
used with a rating symbol (except "AAA") to indicate the relative position
within the category.
Debt rated "AAA", the highest rating by Duff's, is considered to be of the
highest credit quality. The risk factors are negligible being only slightly more
than for risk-free U.S. Treasury debt. Debt rated "AA" is regarded as high
credit quality. Protection factors are strong. Risk is modest but may vary
slightly from time-to-time because of economic conditions. Debt rated "A" is
considered to have average but adequate protection factors. Bonds rated "BBB"
are considered to have below average protection factors but still sufficient for
prudent investment. Bonds rated "BB" and below are below investment grade and
possess fluctuating protection factors and risk.
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<TABLE>
<S> <C>
MONY Life Insurance Company of America -------------------
(An Arizona Stock Company)
Administrative Offices Bulk Rate
1740 Broadway, New York, NY 10019 U.S. Postage
P A I D
Permit No. 4238
Syracuse, New York
-------------------
</TABLE>
Form No. 14165 SL 7/96 [MONY LOGO]
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